Investing.com – Last week saw New Zealand's dollar close higher against its U.S. counterpart on Friday as concerns that the U.S. economic recovery is faltering overshadowed worse-than-expected New Zealand GDP data.
NZD/USD hit 0.7317 on Thursday, a 2-day low; the pair subsequently consolidated at 0.7339 by close of trade on Friday, having gained 0.92% over the week.
The pair is likely to find support at 0.7317 and resistance at 0.7415, the high of September 22.
On Thursday, official data showed that New Zealand's GDP grew less-than-expected in the second quarter. In a report, Statistics New Zealand said the economy expanded by 0.2% in Q2, after growing by a revised 0.5% in the preceding quarter. Analysts had expected GDP to grow by 0.8% in Q2.
But on Friday, official data showed that U.S. durable goods orders declined in line with expectations in August, while new home sales were flat over the month.
The data weakened the U.S. dollar amid concerns that the Federal Reserve may begin another round of asset purchases, known as quantitative easing to bolster flagging U.S. growth and reduce the risk of the U.S. falling into deflation.
Next week, the U.S. is to release key weekly data on initial jobless claims as well as data on unemployment, consumer confidence and manufacturing. The country is also to release final GDP data while Federal Reserve chief Ben Bernanke is to speak at two public engagements.
Meanwhile, New Zealand is to produce key data on business confidence as well as reports on the country's trade balance and building consents.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect NZD/USD. The guide begins on Tuesday, as there are no such events on Monday.
Tuesday, September 28
The U.S. is to publish data on consumer confidence, a leading indicator of consumer spending, which accounts for approximately 70% of all economic activity. The country is also due to release industry data on house prices as well as a report on manufacturing activity in the Richmond area.
Also Tuesday, New Zealand is to produce data on its trade balance, the difference in value between imported and exported goods during the reported month.
Wednesday, September 29
In the U.S., President of the Federal Reserve Bank of Boston Eric Rosengren is due to speak on the nation’s economy. His comments will be closely scrutinized for any clues to the future direction of monetary policy. The country is also to produce data on crude oil inventories.
Elsewhere, New Zealand is to publish official data on building consents, a leading indicator of future construction activity.
Thursday, September 30
The U.S. is to release final data on its gross domestic product, the leading indicator of economic growth. The country is also due to produce key data on initial jobless claims and manufacturing activity in Chicago.
Later in the day, Federal Reserve Chairmen 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.
Also Thursday, New Zealand is to produce key data on business confidence, a leading indicator of economic health.
Friday, October 1
The U.S. is to round up the week by producing key data on personal spending and income, while the University of Michigan is to release revised data on consumer sentiment and inflation expectations. The country is also to release official data on manufacturing conditions, total vehicle sales and construction spending.
NZD/USD hit 0.7317 on Thursday, a 2-day low; the pair subsequently consolidated at 0.7339 by close of trade on Friday, having gained 0.92% over the week.
The pair is likely to find support at 0.7317 and resistance at 0.7415, the high of September 22.
On Thursday, official data showed that New Zealand's GDP grew less-than-expected in the second quarter. In a report, Statistics New Zealand said the economy expanded by 0.2% in Q2, after growing by a revised 0.5% in the preceding quarter. Analysts had expected GDP to grow by 0.8% in Q2.
But on Friday, official data showed that U.S. durable goods orders declined in line with expectations in August, while new home sales were flat over the month.
The data weakened the U.S. dollar amid concerns that the Federal Reserve may begin another round of asset purchases, known as quantitative easing to bolster flagging U.S. growth and reduce the risk of the U.S. falling into deflation.
Next week, the U.S. is to release key weekly data on initial jobless claims as well as data on unemployment, consumer confidence and manufacturing. The country is also to release final GDP data while Federal Reserve chief Ben Bernanke is to speak at two public engagements.
Meanwhile, New Zealand is to produce key data on business confidence as well as reports on the country's trade balance and building consents.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect NZD/USD. The guide begins on Tuesday, as there are no such events on Monday.
Tuesday, September 28
The U.S. is to publish data on consumer confidence, a leading indicator of consumer spending, which accounts for approximately 70% of all economic activity. The country is also due to release industry data on house prices as well as a report on manufacturing activity in the Richmond area.
Also Tuesday, New Zealand is to produce data on its trade balance, the difference in value between imported and exported goods during the reported month.
Wednesday, September 29
In the U.S., President of the Federal Reserve Bank of Boston Eric Rosengren is due to speak on the nation’s economy. His comments will be closely scrutinized for any clues to the future direction of monetary policy. The country is also to produce data on crude oil inventories.
Elsewhere, New Zealand is to publish official data on building consents, a leading indicator of future construction activity.
Thursday, September 30
The U.S. is to release final data on its gross domestic product, the leading indicator of economic growth. The country is also due to produce key data on initial jobless claims and manufacturing activity in Chicago.
Later in the day, Federal Reserve Chairmen 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.
Also Thursday, New Zealand is to produce key data on business confidence, a leading indicator of economic health.
Friday, October 1
The U.S. is to round up the week by producing key data on personal spending and income, while the University of Michigan is to release revised data on consumer sentiment and inflation expectations. The country is also to release official data on manufacturing conditions, total vehicle sales and construction spending.