Investing.com - The New Zealand dollar ended the week close to a three-week high against the U.S. dollar on Friday, as stronger-than-forecast U.S. third quarter growth boosted appetite for riskier assets.
NZD/USD hit 0.8243 on Thursday, the pair’s highest since October 5; the pair subsequently consolidated at 0.8228 by close of trade on Friday, gaining 0.89% for the week.
The pair is likely to find support at 0.8158, Thursday’s low and near-term resistance at 0.8243, Thursday’s high.
The Commerce Department reported that the U.S. economy grew by a stronger-than-forecast 2% in the three months to September, on the back of stronger consumer spending, after expanding by 1.3% in the preceding quarter. Economists had predicted growth of 1.9%.
Separately, the final reading of the University of Michigan’s consumer confidence index ticked down to 82.6 for October, from the initial reading of 83.1, which was the highest since September 2007.
The upbeat data reinforced the view the U.S. economy is improving, raising concern the Fed might scale back its monetary easing measures to support growth.
The Fed reiterated its policy stance at the end of a two-day meeting earlier in the week. In its rate statement, the central bank said the economy is improving moderately, but that growth has been slow and unemployment remains elevated.
The central bank also said it planned to keep its benchmark short-term rate close to zero through mid-2015.
The Fed vowed in mid-September to buy USD40 billion in mortgage securities each month until the economy improves in a third round of what is known as quantitative easing, or QE3.
Meanwhile, in New Zealand, the Reserve Bank of New Zealand left interest rates unchanged at 2.5% in a widely expected move Wednesday.
Elsewhere, market players continued to eye developments surrounding Spain, amid ongoing uncertainty over whether the debt-strapped country is moving closer to formally requesting a bailout from its euro zone partners.
A bailout would allow the European Central Bank to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation. But Spain has been reluctant to do so because it may come with conditions on its budget.
Official data released Friday showed that the country’s unemployment rate jumped to a record 25.02% in the third quarter.
Concerns over political uncertainty in Greece and doubts over whether the country will meet austerity targets also weighed on sentiment.
In the week ahead, investors will be focusing on Friday’s U.S. nonfarm payrolls data after the unemployment rate unexpectedly fell to 7.8% in September from 8.1% the previous month.
In addition, investors will be awaiting any indication that Spain is growing closer to requesting a bailout from its euro zone partners.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, October 29
The U.S. is to release government data on personal income, personal spending and core consumer inflation.
Tuesday, October 30
The U.S. is to release data on consumer confidence, a leading indicator of economic health, as well as industry data on house price inflation, an important indicator of demand in the housing sector.
Wednesday, October 31
New Zealand is to publish a report on business confidence, a leading indicator of economic health, as well as official data on labor costs, a leading indicator of consumer inflation.
In the U.S., payroll processing firm ADP is to release a report on nonfarm payrolls, a leading indicator of private sector job creation. The U.S. is also to publish official data on manufacturing activity in Chicago, as well as data on employment costs and crude oil stockpiles.
Thursday, November 1
The U.S. is to release private sector data on nonfarm payrolls, an important indicator of job creation. The U.S. is also to publish its weekly government report on initial jobless claims, as well as official data on nonfarm productivity and labor costs, important inflationary indicators.
In addition, the Institute of Supply Management is to publish data on U.S. manufacturing activity.
Friday, November 2
The U.S. is to round up the week with the closely watched government report on nonfarm payrolls, a leading indicator of job creation in the economy, as well as data on the unemployment rate.
The U.S. is also to publish official data on average earnings and factory orders.
NZD/USD hit 0.8243 on Thursday, the pair’s highest since October 5; the pair subsequently consolidated at 0.8228 by close of trade on Friday, gaining 0.89% for the week.
The pair is likely to find support at 0.8158, Thursday’s low and near-term resistance at 0.8243, Thursday’s high.
The Commerce Department reported that the U.S. economy grew by a stronger-than-forecast 2% in the three months to September, on the back of stronger consumer spending, after expanding by 1.3% in the preceding quarter. Economists had predicted growth of 1.9%.
Separately, the final reading of the University of Michigan’s consumer confidence index ticked down to 82.6 for October, from the initial reading of 83.1, which was the highest since September 2007.
The upbeat data reinforced the view the U.S. economy is improving, raising concern the Fed might scale back its monetary easing measures to support growth.
The Fed reiterated its policy stance at the end of a two-day meeting earlier in the week. In its rate statement, the central bank said the economy is improving moderately, but that growth has been slow and unemployment remains elevated.
The central bank also said it planned to keep its benchmark short-term rate close to zero through mid-2015.
The Fed vowed in mid-September to buy USD40 billion in mortgage securities each month until the economy improves in a third round of what is known as quantitative easing, or QE3.
Meanwhile, in New Zealand, the Reserve Bank of New Zealand left interest rates unchanged at 2.5% in a widely expected move Wednesday.
Elsewhere, market players continued to eye developments surrounding Spain, amid ongoing uncertainty over whether the debt-strapped country is moving closer to formally requesting a bailout from its euro zone partners.
A bailout would allow the European Central Bank to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation. But Spain has been reluctant to do so because it may come with conditions on its budget.
Official data released Friday showed that the country’s unemployment rate jumped to a record 25.02% in the third quarter.
Concerns over political uncertainty in Greece and doubts over whether the country will meet austerity targets also weighed on sentiment.
In the week ahead, investors will be focusing on Friday’s U.S. nonfarm payrolls data after the unemployment rate unexpectedly fell to 7.8% in September from 8.1% the previous month.
In addition, investors will be awaiting any indication that Spain is growing closer to requesting a bailout from its euro zone partners.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, October 29
The U.S. is to release government data on personal income, personal spending and core consumer inflation.
Tuesday, October 30
The U.S. is to release data on consumer confidence, a leading indicator of economic health, as well as industry data on house price inflation, an important indicator of demand in the housing sector.
Wednesday, October 31
New Zealand is to publish a report on business confidence, a leading indicator of economic health, as well as official data on labor costs, a leading indicator of consumer inflation.
In the U.S., payroll processing firm ADP is to release a report on nonfarm payrolls, a leading indicator of private sector job creation. The U.S. is also to publish official data on manufacturing activity in Chicago, as well as data on employment costs and crude oil stockpiles.
Thursday, November 1
The U.S. is to release private sector data on nonfarm payrolls, an important indicator of job creation. The U.S. is also to publish its weekly government report on initial jobless claims, as well as official data on nonfarm productivity and labor costs, important inflationary indicators.
In addition, the Institute of Supply Management is to publish data on U.S. manufacturing activity.
Friday, November 2
The U.S. is to round up the week with the closely watched government report on nonfarm payrolls, a leading indicator of job creation in the economy, as well as data on the unemployment rate.
The U.S. is also to publish official data on average earnings and factory orders.