Investing.com - The New Zealand dollar rose to a two-day high against its U.S. counterpart on Friday, paring some of the week’s losses as market sentiment slightly improved amid new hopes of progress in tackling the euro zone’s debt crisis.
NZD/USD hit 0.8057 on Thursday, the pair’s lowest since January 25; the pair subsequently consolidated at 0.8179 by close of trade on Friday, declining 0.88% over the week.
The pair was likely to find support at 0.8057, the low of March 22 and resistance at 0.8245, the high of March 13.
Sentiment improved on Friday after euro zone finance ministers said they are moving closer to agreeing on a combined rescue fund of around EUR700 billion next week.
Meanwhile, the U.S. dollar weakened after the U.S. Commerce Department said new home sales dropped 1.6% to a 313,000 annual pace, the slowest since October, from a 318,000 annual rate in January and against expectations for an increase to 325,000.
However, the greenback remained supported after the Federal Reserve upgraded its view on the economy earlier this month, leading investors to trim back expectations for a third round of monetary easing from the central bank.
The U.S. outlook was also boosted by data Thursday showing that jobless claims fell to the lowest level since February 2008 last week.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending March 17 fell by 5,000 to a seasonally adjusted 348,000, beating expectations for a decline of 3,000 to 350,000.
The previous week’s figure was revised up to 353,000 from 351,000.
Also Thursday, the kiwi fell to a two-month against the greenback after official data showed that New Zealand’s gross domestic product rose less-than-expected in the fourth quarter, rising 0.3% after a 0.7% increase the previous quarter.
Analysts had expected the GDP to rise 0.6% in the fourth quarter.
Risk sentiment was also hit after preliminary data from HSBC showed that China’s manufacturing purchasing managers’ index fell to 48.1 in March, from a final reading of 49.6 the previous month, as new orders dropped to their lowest level since November.
The data underlined concerns over a possible slowdown in growth in the world’s second largest economy.
In the week ahead, market participants will be looking ahead to Friday’s meeting of euro zone finance ministers to discuss the lending capacity of the region’s permanent bailout fund, the European Financial Stability Facility.
Meanwhile, the U.S. is to release data on consumer confidence, pending homes sales, and factory output, all of which will be closely watched in order to gauge the strength of the U.S. economic recovery.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, March 26
New Zealand is to produce official data on trade balance, the difference in value between imported and exported goods.
Elsewhere, Federal Reserve Chairman Ben Bernanke is scheduled to speak at the National Association for Business Economists 2012 Policy Conference. The U.S. is also to publish industry data on pending home sales, a key gauge of economic health.
Tuesday, March 27
The U.S. is to produce a Standard & Poor’s/Case Shiller composite-20 house price inflation report, as well as industry data on consumer confidence.
Later in the day, Fed Chairman Bernanke is due to deliver the third part of a lecture titled "The Federal Reserve and its Role in Today's Economy" at the George Washington University School of Business, in Washington.
Wednesday, March 28
The U.S. is to publish government data on durable goods orders, a leading indicator of production, followed by a report on crude oil stockpiles.
Thursday, March 29
The National Bank of New Zealand is to release data on business confidence.
Later Thursday, the U.S. is to publish government data on unemployment claims, a key signal of overall economic health, as well as final data on fourth quarter GDP. Fed Chairman Bernanke is also due to speak.
Friday, March 30
New Zealand is to produce official data on building consents, an important gauge of future construction activity.
The U.S. is to round up the week with government data on personal consumption expenditures and personal spending as well as industry data on the purchasing managers’ index in Chicago. In addition, the University of Michigan is to release revised data on consumer sentiment.
NZD/USD hit 0.8057 on Thursday, the pair’s lowest since January 25; the pair subsequently consolidated at 0.8179 by close of trade on Friday, declining 0.88% over the week.
The pair was likely to find support at 0.8057, the low of March 22 and resistance at 0.8245, the high of March 13.
Sentiment improved on Friday after euro zone finance ministers said they are moving closer to agreeing on a combined rescue fund of around EUR700 billion next week.
Meanwhile, the U.S. dollar weakened after the U.S. Commerce Department said new home sales dropped 1.6% to a 313,000 annual pace, the slowest since October, from a 318,000 annual rate in January and against expectations for an increase to 325,000.
However, the greenback remained supported after the Federal Reserve upgraded its view on the economy earlier this month, leading investors to trim back expectations for a third round of monetary easing from the central bank.
The U.S. outlook was also boosted by data Thursday showing that jobless claims fell to the lowest level since February 2008 last week.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending March 17 fell by 5,000 to a seasonally adjusted 348,000, beating expectations for a decline of 3,000 to 350,000.
The previous week’s figure was revised up to 353,000 from 351,000.
Also Thursday, the kiwi fell to a two-month against the greenback after official data showed that New Zealand’s gross domestic product rose less-than-expected in the fourth quarter, rising 0.3% after a 0.7% increase the previous quarter.
Analysts had expected the GDP to rise 0.6% in the fourth quarter.
Risk sentiment was also hit after preliminary data from HSBC showed that China’s manufacturing purchasing managers’ index fell to 48.1 in March, from a final reading of 49.6 the previous month, as new orders dropped to their lowest level since November.
The data underlined concerns over a possible slowdown in growth in the world’s second largest economy.
In the week ahead, market participants will be looking ahead to Friday’s meeting of euro zone finance ministers to discuss the lending capacity of the region’s permanent bailout fund, the European Financial Stability Facility.
Meanwhile, the U.S. is to release data on consumer confidence, pending homes sales, and factory output, all of which will be closely watched in order to gauge the strength of the U.S. economic recovery.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, March 26
New Zealand is to produce official data on trade balance, the difference in value between imported and exported goods.
Elsewhere, Federal Reserve Chairman Ben Bernanke is scheduled to speak at the National Association for Business Economists 2012 Policy Conference. The U.S. is also to publish industry data on pending home sales, a key gauge of economic health.
Tuesday, March 27
The U.S. is to produce a Standard & Poor’s/Case Shiller composite-20 house price inflation report, as well as industry data on consumer confidence.
Later in the day, Fed Chairman Bernanke is due to deliver the third part of a lecture titled "The Federal Reserve and its Role in Today's Economy" at the George Washington University School of Business, in Washington.
Wednesday, March 28
The U.S. is to publish government data on durable goods orders, a leading indicator of production, followed by a report on crude oil stockpiles.
Thursday, March 29
The National Bank of New Zealand is to release data on business confidence.
Later Thursday, the U.S. is to publish government data on unemployment claims, a key signal of overall economic health, as well as final data on fourth quarter GDP. Fed Chairman Bernanke is also due to speak.
Friday, March 30
New Zealand is to produce official data on building consents, an important gauge of future construction activity.
The U.S. is to round up the week with government data on personal consumption expenditures and personal spending as well as industry data on the purchasing managers’ index in Chicago. In addition, the University of Michigan is to release revised data on consumer sentiment.