Investing.com - The New Zealand dollar ended Friday’s session close to a two-week high against its U.S. counterpart, amid speculation that U.S. lawmakers will reach an agreement to increase the nation’s debt limit and end a government shutdown.
NZD/USD hit 0.8354 on Friday, the pair’s highest since September 24; the pair subsequently consolidated at 0.8322 by close of trade on Friday, up 0.47% for the day and 0.02% higher for the week.
The pair is likely to find support at 0.8232, the low from October 10 and resistance at 0.8360, the high from September 24.
Investor confidence was boosted as House Republicans and the Obama administration began a second day of negotiations on a deal to reopen the government and raise the U.S. debt ceiling for six weeks.
The federal government has been shut down since October 1. Lawmakers must raise the national borrowing limit by October 17 or run the risk of a U.S. sovereign debt default.
Concerns over economic impact of the U.S budget and debt ceiling impasse fuelled expectations that the Federal Reserve will further delay plans to start phasing out its USD85 billion a month asset purchase program.
Wednesday’s minutes of the Fed’s September meeting said the decision not to begin tapering stimulus was a "close call," with all but one voting member opting to leave the program unchanged.
Data released on Friday showed that U.S. consumer sentiment fell to the lowest level in nine months in October, as concerns over the impact of the government shutdown weighed.
The University of Michigan’s consumer sentiment index declined to 75.2 from a final reading of 77.5 in September, and below expectations for a reading of 76.0.
In the week ahead, investors will continue to closely monitor political developments in Washington.
Market players are also looking ahead to a raft of Chinese economic data, including reports on inflation, gross domestic product, industrial production and retail sales.
Official data released on Saturday showed that China’s trade surplus narrowed sharply in September as exports declined unexpectedly, fuelling concerns over growth prospects in the world’s second-largest economy.
China’s trade surplus narrowed to USD15.2 billion last month from a surplus of USD28.6 billion in August, compared to estimates for a surplus of USD27.7 billion.
Chinese exports fell 0.3% from a year earlier, defying expectations for a 6% increase and following a 7.2% gain in August.
China 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.
Monday, October 14
China is to publish data on consumer inflation, which accounts for the majority of overall inflation.
Meanwhile, markets in the U.S. are to remain closed for the Columbus Day holiday.
Tuesday, October 15
The U.S. is to release a report on manufacturing activity in the Empire state.
Wednesday, October 16
New Zealand is to release data on consumer price inflation.
Thursday, October 17
The U.S. is to publish the weekly government report on initial jobless claims, as well as data on manufacturing activity from the Philly Fed.
Friday, October 18
China is to release data on third quarter gross domestic product, the broadest indicator of economic activity and the leading measure of the economy’s health, in addition to data on industrial production.
NZD/USD hit 0.8354 on Friday, the pair’s highest since September 24; the pair subsequently consolidated at 0.8322 by close of trade on Friday, up 0.47% for the day and 0.02% higher for the week.
The pair is likely to find support at 0.8232, the low from October 10 and resistance at 0.8360, the high from September 24.
Investor confidence was boosted as House Republicans and the Obama administration began a second day of negotiations on a deal to reopen the government and raise the U.S. debt ceiling for six weeks.
The federal government has been shut down since October 1. Lawmakers must raise the national borrowing limit by October 17 or run the risk of a U.S. sovereign debt default.
Concerns over economic impact of the U.S budget and debt ceiling impasse fuelled expectations that the Federal Reserve will further delay plans to start phasing out its USD85 billion a month asset purchase program.
Wednesday’s minutes of the Fed’s September meeting said the decision not to begin tapering stimulus was a "close call," with all but one voting member opting to leave the program unchanged.
Data released on Friday showed that U.S. consumer sentiment fell to the lowest level in nine months in October, as concerns over the impact of the government shutdown weighed.
The University of Michigan’s consumer sentiment index declined to 75.2 from a final reading of 77.5 in September, and below expectations for a reading of 76.0.
In the week ahead, investors will continue to closely monitor political developments in Washington.
Market players are also looking ahead to a raft of Chinese economic data, including reports on inflation, gross domestic product, industrial production and retail sales.
Official data released on Saturday showed that China’s trade surplus narrowed sharply in September as exports declined unexpectedly, fuelling concerns over growth prospects in the world’s second-largest economy.
China’s trade surplus narrowed to USD15.2 billion last month from a surplus of USD28.6 billion in August, compared to estimates for a surplus of USD27.7 billion.
Chinese exports fell 0.3% from a year earlier, defying expectations for a 6% increase and following a 7.2% gain in August.
China 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.
Monday, October 14
China is to publish data on consumer inflation, which accounts for the majority of overall inflation.
Meanwhile, markets in the U.S. are to remain closed for the Columbus Day holiday.
Tuesday, October 15
The U.S. is to release a report on manufacturing activity in the Empire state.
Wednesday, October 16
New Zealand is to release data on consumer price inflation.
Thursday, October 17
The U.S. is to publish the weekly government report on initial jobless claims, as well as data on manufacturing activity from the Philly Fed.
Friday, October 18
China is to release data on third quarter gross domestic product, the broadest indicator of economic activity and the leading measure of the economy’s health, in addition to data on industrial production.