Forex - NZD/USD weekly outlook: September 20-24

Published 09/19/2010, 08:21 AM
NZD/USD
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Investing.com – Last week, volatile trade saw New Zealand’s dollar retreat from a 7-week high against its U.S. counterpart, ahead of a rate announcement by the Reserve Bank of New Zealand, before trimming losses on Friday.

NZD/USD hit 0.7214 on Thursday, the pair’s lowest since September 9; the pair subsequently consolidated at 0.7253, shedding 0.80% over the week.

The pair is likely to find support at 0.7158, the low of September 8, and resistance at 0.7393, the high of September 14.

On Tuesday, the kiwi rose to hit a 7-week high, as risk appetite increased after official data showed U.S. retail sales rose more-than-expected in August.

On Thursday, the RBNZ left its benchmark interest rate unchanged at 3.00%, in line with expectations. RBNZ Governor Alan Bollard said, "The outlook has weakened since our June statement," adding that the recent earthquake had significantly disrupted economic activity and was likely to do so for some time.

In the week ahead, the U.S. Federal Reserve is to announce its benchmark interest rate. The U.S. is also to release several reports on the housing sector as well as a weekly report on initial jobless claims.

The country is also to release key data on manufacturing production while Federal Reserve chairman Ben Bernanke is to speak at a public engagement.

Meanwhile, New Zealand is to publish quarterly data on GDP and its current account.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect NZD/USD.

Monday, September 20

The U.S. is to begin the week by publishing industry data on home sales, a leading indicator of economic health.

Meanwhile, New Zealand is to publish data on visitor arrivals, as tourism accounts for approximately 10% of the country's economy.

Tuesday, September 21

The U.S. Federal Reserve is to announce its benchmark interest rate, followed by the closely watched rate statement. The U.S. is also to release key data on building permits and housing starts, leading indicators of growth in the construction sector.

Later in the day, New Zealand is to publish official data on its current account.

Wednesday, September 22

The U.S. is to publish data on crude oil inventories as well as industry data on house prices, a leading indicator of the housing industry's health.

Meanwhile, New Zealand is to publish a quarterly report on GDP, the leading indicator of economic growth.

Thursday, September 23

The U.S. is to release key weekly data on initial jobless claims, a leading indicator of economic health, as well as data on existing home sales. The country is also due to publish an index of leading economic indicators, designed to predict the future direction of the economy.

Friday, September 24


The U.S. is to end the week by producing key data on durable goods orders, a leading indicator of manufacturing production. The country is also to produce data on new home sales, a leading indicator of growth in the housing sector.

Later in the day, Federal Reserve Chairman Ben Bernanke is expected to deliver a speech on the U.S. economy. His comments will be closely scrutinized for any clues to the future direction of monetary policy.

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