Investing.com - The New Zealand dollar ended Friday’s session at a ten-week low against its U.S. counterpart, after official data showed that the U.S. economy added significantly more jobs than forecast in February.
NZD/USD hit 0.8186 on Friday, the pair’s lowest since December 28; the pair subsequently consolidated at 0.8216 by close of trade, 0.42% lower for the week.
The pair is likely to find support at 0.8186, Friday’s low and a ten-week low and resistance at 0.8312, Thursday’s high.
The Department of Labor said the U.S. economy added 236,000 jobs last month, blowing past expectations for an increase of 160,000. The unemployment rate ticked down to 7.7%, the lowest level since December 2008, from 7.9% in January.
The robust data added to speculation over an earlier-than-expected end to the Federal Reserve’s easing program, bolstering demand for the dollar.
Meanwhile, in China, a report Friday showed that the nation’s trade surplus narrowed less-than-expected in February from January, as exports jumped 21.8%, while imports tumbled 15.2%.
China’s trade surplus hit USD15.3 billion last month, down from a USD29.2 billion surplus reported in January. Analysts were expecting an USD8.8 billion deficit.
Official data released over the weekend showed that consumer prices in China rose 3.2% in February from a year earlier, above expectations for a 3% increase and accelerating sharply from a 2% rate of increase in January.
The faster-than-expected increase in the rate of inflation was likely to dampen hopes that Beijing will introduce fresh easing measures in the near-term to boost economic growth.
Separate reports showed that industrial production rose 9.9% in February, less than the expected 10.5% increase and following a 10.3% rise the previous month.
China is New Zealand's second biggest export partner.
Elsewhere, the kiwi was higher against the euro on Friday, with EUR/NZD dipping 0.02% to hit 1.5824.
The euro came under pressure after ratings agency Fitch Ratings cut Italy’s sovereign credit rating to BBB+ from A-, citing the inconclusive outcome of last month’s parliamentary elections and a deeper recession.
The euro rallied broadly on Thursday after less dovish than expected comments from European Central Bank President Mario Draghi at the bank's post-policy meeting press conference.
Draghi said monetary policy will remain firmly accommodative and added that confidence was returning to financial markets.
In the week ahead, investors will be closely watching U.S. data on retail sales, industrial production and inflation to determine the strength of the economic recovery.
Markets will also be eyeing developments in the euro zone and a policy meeting by the Reserve Bank of New Zealand.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Monday as there are no relevant events for that date.
Tuesday, March 12
The U.S. is to publish data on the federal budget balance.
Wednesday, March 13
The U.S. is to release government data on retail sales, as well as official data on import prices, business inventories and crude oil stockpiles.
Later in the day, the RBNZ is to announce its benchmark interest rate. The rate announcement is to be accompanied by the bank’s rate statement, which contains important insights into current and future economic conditions from the bank’s perspective and followed by a press conference.
Thursday, March 14
The U.S. is to release government data on producer price inflation, the leading indicator of consumer inflation and the weekly government report on initial jobless claims.
Friday, March 15
The U.S. is to round up the week with official data on consumer inflation and preliminary data from the University of Michigan on consumer sentiment. The U.S. is also to release data on industrial production, the capacity utilization rate and manufacturing activity in New York state.
NZD/USD hit 0.8186 on Friday, the pair’s lowest since December 28; the pair subsequently consolidated at 0.8216 by close of trade, 0.42% lower for the week.
The pair is likely to find support at 0.8186, Friday’s low and a ten-week low and resistance at 0.8312, Thursday’s high.
The Department of Labor said the U.S. economy added 236,000 jobs last month, blowing past expectations for an increase of 160,000. The unemployment rate ticked down to 7.7%, the lowest level since December 2008, from 7.9% in January.
The robust data added to speculation over an earlier-than-expected end to the Federal Reserve’s easing program, bolstering demand for the dollar.
Meanwhile, in China, a report Friday showed that the nation’s trade surplus narrowed less-than-expected in February from January, as exports jumped 21.8%, while imports tumbled 15.2%.
China’s trade surplus hit USD15.3 billion last month, down from a USD29.2 billion surplus reported in January. Analysts were expecting an USD8.8 billion deficit.
Official data released over the weekend showed that consumer prices in China rose 3.2% in February from a year earlier, above expectations for a 3% increase and accelerating sharply from a 2% rate of increase in January.
The faster-than-expected increase in the rate of inflation was likely to dampen hopes that Beijing will introduce fresh easing measures in the near-term to boost economic growth.
Separate reports showed that industrial production rose 9.9% in February, less than the expected 10.5% increase and following a 10.3% rise the previous month.
China is New Zealand's second biggest export partner.
Elsewhere, the kiwi was higher against the euro on Friday, with EUR/NZD dipping 0.02% to hit 1.5824.
The euro came under pressure after ratings agency Fitch Ratings cut Italy’s sovereign credit rating to BBB+ from A-, citing the inconclusive outcome of last month’s parliamentary elections and a deeper recession.
The euro rallied broadly on Thursday after less dovish than expected comments from European Central Bank President Mario Draghi at the bank's post-policy meeting press conference.
Draghi said monetary policy will remain firmly accommodative and added that confidence was returning to financial markets.
In the week ahead, investors will be closely watching U.S. data on retail sales, industrial production and inflation to determine the strength of the economic recovery.
Markets will also be eyeing developments in the euro zone and a policy meeting by the Reserve Bank of New Zealand.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Monday as there are no relevant events for that date.
Tuesday, March 12
The U.S. is to publish data on the federal budget balance.
Wednesday, March 13
The U.S. is to release government data on retail sales, as well as official data on import prices, business inventories and crude oil stockpiles.
Later in the day, the RBNZ is to announce its benchmark interest rate. The rate announcement is to be accompanied by the bank’s rate statement, which contains important insights into current and future economic conditions from the bank’s perspective and followed by a press conference.
Thursday, March 14
The U.S. is to release government data on producer price inflation, the leading indicator of consumer inflation and the weekly government report on initial jobless claims.
Friday, March 15
The U.S. is to round up the week with official data on consumer inflation and preliminary data from the University of Michigan on consumer sentiment. The U.S. is also to release data on industrial production, the capacity utilization rate and manufacturing activity in New York state.