Investing.com - The New Zealand dollar ended Friday’s session close to a three-week high against its U.S. counterpart, after data showed the U.S. economy created less jobs than expected in August.
The disappointing data saw investors reassess expectations over the timing of a pullback in the Federal Reserve’s stimulus program.
NZD/USD hit 0.8022 on Friday, the pair’s highest since August 20; the pair subsequently consolidated at 0.8006 by close of trade on Friday, up 1.55% for the day and 3.49% higher for the week.
The pair is likely to find support at 0.7884, Friday’s session low and resistance at 0.8068, the high from August 20.
The Department of Labor said Friday the U.S. economy added 169,000 jobs in August, fewer than the 180,000 forecast by economists.
The report also said that job growth in July was revised down to 104,000 from 162,000, while June’s figure was revised down to 172,000 from 188,000.
The unemployment rate ticked down to a four-and-a-half year low of 7.3% from 7.4% in July, but this was partially due to more people dropping out of the labor force.
The U.S. dollar came under pressure amid renewed uncertainty over whether the Fed will start to unwind its USD85 billion-a-month asset purchase program at its upcoming policy meeting on September 17-18.
Fed Chairman Ben Bernanke has said that the decision to begin tapering will depend on whether economic data is strong enough.
In the week ahead, investors will be closely watching Friday’s U.S. data on retail sales and consumer sentiment for indications on the strength of the economic recovery.
Market players have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
Any improvement in the U.S. economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months.
An interest rate decision by the Reserve Bank of New Zealand will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Wednesday as there are no relevant events on this day.
Monday, September 9
China is to produce data on consumer price inflation, which accounts for the majority of overall inflation. The Asian nation is New Zealand’s second-largest trade partner.
Tuesday, September 10
China is to publish data on fixed asset investments and industrial production.
Thursday, September 12
The RBNZ is to announce its benchmark interest rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision. The bank is to hold a press conference after the rate announcement.
The U.S. is to release the weekly government report on initial jobless claims, a leading economic indicator, as well as official data on import prices.
Friday, September 13
New Zealand is to release private sector data on manufacturing activity.
The U.S. is to round up the week with reports on retail sales and producer price inflation, as well as preliminary data from the University of Michigan on consumer sentiment.
The disappointing data saw investors reassess expectations over the timing of a pullback in the Federal Reserve’s stimulus program.
NZD/USD hit 0.8022 on Friday, the pair’s highest since August 20; the pair subsequently consolidated at 0.8006 by close of trade on Friday, up 1.55% for the day and 3.49% higher for the week.
The pair is likely to find support at 0.7884, Friday’s session low and resistance at 0.8068, the high from August 20.
The Department of Labor said Friday the U.S. economy added 169,000 jobs in August, fewer than the 180,000 forecast by economists.
The report also said that job growth in July was revised down to 104,000 from 162,000, while June’s figure was revised down to 172,000 from 188,000.
The unemployment rate ticked down to a four-and-a-half year low of 7.3% from 7.4% in July, but this was partially due to more people dropping out of the labor force.
The U.S. dollar came under pressure amid renewed uncertainty over whether the Fed will start to unwind its USD85 billion-a-month asset purchase program at its upcoming policy meeting on September 17-18.
Fed Chairman Ben Bernanke has said that the decision to begin tapering will depend on whether economic data is strong enough.
In the week ahead, investors will be closely watching Friday’s U.S. data on retail sales and consumer sentiment for indications on the strength of the economic recovery.
Market players have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
Any improvement in the U.S. economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months.
An interest rate decision by the Reserve Bank of New Zealand will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Wednesday as there are no relevant events on this day.
Monday, September 9
China is to produce data on consumer price inflation, which accounts for the majority of overall inflation. The Asian nation is New Zealand’s second-largest trade partner.
Tuesday, September 10
China is to publish data on fixed asset investments and industrial production.
Thursday, September 12
The RBNZ is to announce its benchmark interest rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision. The bank is to hold a press conference after the rate announcement.
The U.S. is to release the weekly government report on initial jobless claims, a leading economic indicator, as well as official data on import prices.
Friday, September 13
New Zealand is to release private sector data on manufacturing activity.
The U.S. is to round up the week with reports on retail sales and producer price inflation, as well as preliminary data from the University of Michigan on consumer sentiment.