Investing.com - The New Zealand dollar ended Friday’s lower against its U.S. counterpart, as concerns over a slowdown in China and fears over an earlier-than-expected exit from the Federal Reserve’s easing program pressured the currency lower.
NZD/USD hit 0.8005 on Thursday, the pair’s lowest since September 6; the pair subsequently consolidated at 0.8089 by close of trade on Friday, easing up 0.34% for the week.
The pair is likely to find support at 0.8005, Thursday’s low and an eight-month low and resistance at 0.8142, Friday’s high.
The kiwi came under heavy selling pressure on Thursday after data showed that manufacturing activity in China contracted for the first time in seven months in May.
China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a seven-month low of 49.6 in May from a final reading of 50.4 in April.
The Asian nation is New Zealand’s largest trade partner.
Meanwhile, the greenback remained supported after Fed Chairman Ben Bernanke said on Wednesday that a decision to scale back the U.S. central bank’s USD85 billion-dollar-a-month asset purchase program could be taken in the "next few meetings" depending on economic data.
Wednesday’s minutes from the U.S. central bank’s May meeting showed a "number" of policymakers were prepared to taper bonds purchases as soon as June.
In New Zealand, official data released Friday showed that the Pacific nation posted a trade surplus of NZD157 million in April, narrowing from NZD718 million in March. Analysts had expected the country’s trade surplus to narrow to NZD475 million.
Elsewhere, the kiwi was also lower against the euro, with EUR/NZD rising 0.6% on Friday to hit 1.5995.
The single currency was boosted after data showed that Germany’s Ifo index of business climate rose to 105.7 from 104.4 in April, fuelling optimism over the outlook for the euro zone’s largest economy. Analysts had expected the index to tick up to 104.5.
In the week ahead, traders will be focusing on a flurry of U.S. economic data, including reports on the housing sector, consumer confidence and initial jobless claims.
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 Wednesday as there are no relevant events for the day.
Monday, May 27
U.S. markets are to remain closed for the Memorial Day holiday.
Tuesday, May 28
The U.S. is to produce private sector data on house price inflation, in addition to data on consumer confidence, a leading economic indicator.
Thursday, May 30
The U.S. is to release revised data on first quarter economic growth, in addition to the weekly report on initial jobless claims and data on pending home sales.
Friday, May 31
New Zealand is to release private sector data on business confidence, a leading indicator of economic health.
The U.S. is to round up the week with revised data on consumer sentiment from the University of Michigan, as well as data on personal income and expenditure and a report on manufacturing activity in Chicago.
NZD/USD hit 0.8005 on Thursday, the pair’s lowest since September 6; the pair subsequently consolidated at 0.8089 by close of trade on Friday, easing up 0.34% for the week.
The pair is likely to find support at 0.8005, Thursday’s low and an eight-month low and resistance at 0.8142, Friday’s high.
The kiwi came under heavy selling pressure on Thursday after data showed that manufacturing activity in China contracted for the first time in seven months in May.
China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a seven-month low of 49.6 in May from a final reading of 50.4 in April.
The Asian nation is New Zealand’s largest trade partner.
Meanwhile, the greenback remained supported after Fed Chairman Ben Bernanke said on Wednesday that a decision to scale back the U.S. central bank’s USD85 billion-dollar-a-month asset purchase program could be taken in the "next few meetings" depending on economic data.
Wednesday’s minutes from the U.S. central bank’s May meeting showed a "number" of policymakers were prepared to taper bonds purchases as soon as June.
In New Zealand, official data released Friday showed that the Pacific nation posted a trade surplus of NZD157 million in April, narrowing from NZD718 million in March. Analysts had expected the country’s trade surplus to narrow to NZD475 million.
Elsewhere, the kiwi was also lower against the euro, with EUR/NZD rising 0.6% on Friday to hit 1.5995.
The single currency was boosted after data showed that Germany’s Ifo index of business climate rose to 105.7 from 104.4 in April, fuelling optimism over the outlook for the euro zone’s largest economy. Analysts had expected the index to tick up to 104.5.
In the week ahead, traders will be focusing on a flurry of U.S. economic data, including reports on the housing sector, consumer confidence and initial jobless claims.
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 Wednesday as there are no relevant events for the day.
Monday, May 27
U.S. markets are to remain closed for the Memorial Day holiday.
Tuesday, May 28
The U.S. is to produce private sector data on house price inflation, in addition to data on consumer confidence, a leading economic indicator.
Thursday, May 30
The U.S. is to release revised data on first quarter economic growth, in addition to the weekly report on initial jobless claims and data on pending home sales.
Friday, May 31
New Zealand is to release private sector data on business confidence, a leading indicator of economic health.
The U.S. is to round up the week with revised data on consumer sentiment from the University of Michigan, as well as data on personal income and expenditure and a report on manufacturing activity in Chicago.