Investing.com - The New Zealand dollar bounced off the lowest level in more than two years against its U.S. counterpart on Friday, as a softer than expected U.S. jobs report prompted profit taking in the greenback.
NZD/USD hit a daily low of 0.7661 on Friday, the weakest level since June 2012, before subsequently consolidating at 0.7754 by close of trade on Friday, up 0.81% for the day but still 0.44% lower for the week.
The pair is likely to find support at 0.7661, the low from November 7, and resistance at 0.7841, the high from November 5.
In a report, the Department of Labor said that the U.S. economy added 214,000 jobs last month, missing expectations for jobs growth of 231,000.
The U.S. unemployment rate ticked down to a fresh six-year low of 5.8% from 5.9% in September, suggesting the economy remains on a strengthening path.
While the data prompted investors to sell the greenback to lock in gains following its recent rally, it did little to alter expectations that the Federal Reserve will raise interest rates ahead of its other major peers.
Meanwhile, in New Zealand, data released earlier in the week showed that the unemployment rate fell to 5.4% in the third quarter from 5.6% in the three months to June. It was the lowest rate since March 2009 and was in line with forecasts.
Employment grew 0.8 %, ahead of forecasts of 0.6%, to 2.35 million people, and was up 3.2% on a year-over-year basis.
In the week ahead, investors will be awaiting U.S. data on retail sales and consumer sentiment for fresh signals on the strength of the economic recovery.
Traders are looking ahead to a raft of Chinese economic data later this week, including reports on consumer price inflation, industrial production and retail sales figures for October.
The Asian nation is New Zealand's second largest trade partner.
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 on that day.
Monday, November 10
China is to release data on producer and consumer price inflation.
Tuesday, November 11
The Reserve Bank of New Zealand is to publish its financial stability report, and Governor Graeme Wheeler is to hold a press conference to discuss the report.
Thursday, November 13
China is to produce data on industrial production and fixed asset investment.
The U.S. is to publish the weekly report on initial jobless claims.
Friday, November 14
The U.S. is to round up the week with data on retail sales and import prices as well as preliminary data on consumer sentiment from the University of Michigan.