Investing.com - The New Zealand dollar ended the week at a more than three-week low against the U.S. dollar on Friday, after weak service sector data out of China dampened demand for the growth linked currency.
NZD/USD hit 0.8151 on Friday, the pair's lowest since September 11; the pair subsequently consolidated at 0.8177 by close of trade, down 1.31% on the week.
The pair is likely to find support at 0.8080, the low of September 11 and resistance at 0.8264, Friday's high.
The Kiwi remained lower against the greenback after the U.S. Department of Labor said Friday the economy added 114,000 jobs in September, pushing the unemployment rate down to 7.8% from 8.1% the previous month, the lowest level since January 2009.
The report came after upbeat U.S. data on manufacturing and services earlier in the week and fuelled hopes that the economic recovery may be gaining momentum.
The kiwi fell sharply against the greenback on Wednesday after official data showed that growth in China’s service sector moderated in September, underlining concerns over a slowdown in the world’s second largest economy. China is New Zealand's second-largest export destination.
The report came one-day after the Reserve Bank of Australia cut interest rates to 3.25% from 3.5%, the third rate cut in six months, citing a worsening outlook for the global economy and signs of a weakening local labor market.
Market sentiment was boosted on Thursday after European Central Bank President Mario Draghi reiterated that the single currency is “irreversible” and said that the bank was ready to buy the debt of distressed euro zone states.
On Tuesday, Spanish Prime Minister Mariano Rajoy downplayed the possibility that Madrid would request a full-scale sovereign bailout, saying it was not certain that the country would ask for external financial assistance.
In the week ahead, market participants will be closely watching the outcome of a meeting of euro zone finance ministers on Tuesday, where a possible bailout for Spain is expected to be on the agenda.
Meanwhile, the U.S. is to publish its weekly report on initial jobless claims, as well as a closely watched report on consumer sentiment.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, October 8
New Zealand is to produce a report on business confidence, a leading indicator of economic health.
Markets in the U.S. are to remain closed for the Columbus Day holiday.
Tuesday, October 9
New Zealand is to produce industry data on house price inflation, a leading indicator of demand in the housing sector.
Wednesday, October 10
The U.S. Federal Reserve is to publish its Beige Book, which outlines current economic conditions.
Thursday, October 11
The U.S. is also to publish government data on the trade balance, in addition to official data on initial jobless claims, import prices and crude oil stockpiles.
Also Thursday, finance ministers and central bankers from the G7 group of industrialized nations are due to hold talks in Tokyo.
Friday, October 12
The U.S. is to round up the week with official data on producer price inflation, a leading indicator of consumer inflation. In addition, the University of Michigan is to release preliminary data on consumer sentiment, a leading indicator of economic health.
NZD/USD hit 0.8151 on Friday, the pair's lowest since September 11; the pair subsequently consolidated at 0.8177 by close of trade, down 1.31% on the week.
The pair is likely to find support at 0.8080, the low of September 11 and resistance at 0.8264, Friday's high.
The Kiwi remained lower against the greenback after the U.S. Department of Labor said Friday the economy added 114,000 jobs in September, pushing the unemployment rate down to 7.8% from 8.1% the previous month, the lowest level since January 2009.
The report came after upbeat U.S. data on manufacturing and services earlier in the week and fuelled hopes that the economic recovery may be gaining momentum.
The kiwi fell sharply against the greenback on Wednesday after official data showed that growth in China’s service sector moderated in September, underlining concerns over a slowdown in the world’s second largest economy. China is New Zealand's second-largest export destination.
The report came one-day after the Reserve Bank of Australia cut interest rates to 3.25% from 3.5%, the third rate cut in six months, citing a worsening outlook for the global economy and signs of a weakening local labor market.
Market sentiment was boosted on Thursday after European Central Bank President Mario Draghi reiterated that the single currency is “irreversible” and said that the bank was ready to buy the debt of distressed euro zone states.
On Tuesday, Spanish Prime Minister Mariano Rajoy downplayed the possibility that Madrid would request a full-scale sovereign bailout, saying it was not certain that the country would ask for external financial assistance.
In the week ahead, market participants will be closely watching the outcome of a meeting of euro zone finance ministers on Tuesday, where a possible bailout for Spain is expected to be on the agenda.
Meanwhile, the U.S. is to publish its weekly report on initial jobless claims, as well as a closely watched report on consumer sentiment.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, October 8
New Zealand is to produce a report on business confidence, a leading indicator of economic health.
Markets in the U.S. are to remain closed for the Columbus Day holiday.
Tuesday, October 9
New Zealand is to produce industry data on house price inflation, a leading indicator of demand in the housing sector.
Wednesday, October 10
The U.S. Federal Reserve is to publish its Beige Book, which outlines current economic conditions.
Thursday, October 11
The U.S. is also to publish government data on the trade balance, in addition to official data on initial jobless claims, import prices and crude oil stockpiles.
Also Thursday, finance ministers and central bankers from the G7 group of industrialized nations are due to hold talks in Tokyo.
Friday, October 12
The U.S. is to round up the week with official data on producer price inflation, a leading indicator of consumer inflation. In addition, the University of Michigan is to release preliminary data on consumer sentiment, a leading indicator of economic health.