Investing.com - The New Zealand dollar ended the week moderately lower against its U.S. counterpart, as events in the euro zone continued to weigh on market sentiment, while positive economic reports from the U.S. lent support to the greenback.
NZD/USD hit 0.8036 on Wednesday, the pair’s lowest since July 27; the pair subsequently consolidated at 0.8070 by close of trade on Friday, shedding 0.57% over the week.
The pair was likely to find support at 0.8012, the low of July 3 and resistance at 0.8138, the high of August 10.
Risk sentiment came under pressure, as investors eyed upcoming economic data from the euro zone for signs of progress in the handling of the region’s debt crisis.
The kiwi had climbed to a four-day high against the greenback earlier Friday, after German Chancellor Angela Merkel backed European Central Bank President Mario Draghi's vow to do all that is necessary to defend euro.
Her comments increased expectations the ECB would buy Spanish and Italian bonds next month to lower the two countries' borrowing costs.
In New Zealand, official data showed that producer price inflation input rose unexpectedly in the second quarter, ticking up 0.6% after a 0.3% increase in the previous quarter.
Analysts had expected producer price inflation input to fall 0.2% in the second quarter.
Meanwhile, the U.S. dollar found support after data on Friday showed that the University of Michigan’s consumer sentiment index for August hit its highest level in three months, coming in at 73.6 from 72.3 in July and outstripping forecasts for a reading of 72.4.
In addition, the Conference Board reported that its index of leading indicators rose more-than-expected in July, ticking up 0.4% after a 0.4% decline the previous month.
Analysts had expected the index to rise 0.2% in July.
The data came after better-than-expected U.S. retail sales and industrial production data earlier in the week tempered expectations for another round of quantitative easing by the U.S. central bank.
In the week ahead, market participants will be awaiting Wednesday’s minutes of the Federal Reserve’s August meeting for any indications on the future possible direction of monetary policy. The U.S. is also to release closely watched reports on the housing sector and manufacturing production.
Elsewhere, the Reserve Bank of New Zealand is to publish data on inflation expectations.
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 Monday, as there are no relevant events on this day.
Tuesday, August 21
The RBNZ is to publish data on inflation expectations.
Wednesday, August 22
The Fed is to produce the minutes of its August policy meeting, amid growing speculation over whether the U.S. central bank will soon announce a third round of quantitative easing. The U.S. is also to release government data on crude oil stockpiles.
Thursday, August 23
The U.S. is to release its weekly government report on initial jobless claims, followed by preliminary data on manufacturing activity and official data on new home sales, a key gauge of economic health.
Friday, August 24
The U.S. is to round up the week with government data on durable goods orders, a key indicator of manufacturing production.
NZD/USD hit 0.8036 on Wednesday, the pair’s lowest since July 27; the pair subsequently consolidated at 0.8070 by close of trade on Friday, shedding 0.57% over the week.
The pair was likely to find support at 0.8012, the low of July 3 and resistance at 0.8138, the high of August 10.
Risk sentiment came under pressure, as investors eyed upcoming economic data from the euro zone for signs of progress in the handling of the region’s debt crisis.
The kiwi had climbed to a four-day high against the greenback earlier Friday, after German Chancellor Angela Merkel backed European Central Bank President Mario Draghi's vow to do all that is necessary to defend euro.
Her comments increased expectations the ECB would buy Spanish and Italian bonds next month to lower the two countries' borrowing costs.
In New Zealand, official data showed that producer price inflation input rose unexpectedly in the second quarter, ticking up 0.6% after a 0.3% increase in the previous quarter.
Analysts had expected producer price inflation input to fall 0.2% in the second quarter.
Meanwhile, the U.S. dollar found support after data on Friday showed that the University of Michigan’s consumer sentiment index for August hit its highest level in three months, coming in at 73.6 from 72.3 in July and outstripping forecasts for a reading of 72.4.
In addition, the Conference Board reported that its index of leading indicators rose more-than-expected in July, ticking up 0.4% after a 0.4% decline the previous month.
Analysts had expected the index to rise 0.2% in July.
The data came after better-than-expected U.S. retail sales and industrial production data earlier in the week tempered expectations for another round of quantitative easing by the U.S. central bank.
In the week ahead, market participants will be awaiting Wednesday’s minutes of the Federal Reserve’s August meeting for any indications on the future possible direction of monetary policy. The U.S. is also to release closely watched reports on the housing sector and manufacturing production.
Elsewhere, the Reserve Bank of New Zealand is to publish data on inflation expectations.
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 Monday, as there are no relevant events on this day.
Tuesday, August 21
The RBNZ is to publish data on inflation expectations.
Wednesday, August 22
The Fed is to produce the minutes of its August policy meeting, amid growing speculation over whether the U.S. central bank will soon announce a third round of quantitative easing. The U.S. is also to release government data on crude oil stockpiles.
Thursday, August 23
The U.S. is to release its weekly government report on initial jobless claims, followed by preliminary data on manufacturing activity and official data on new home sales, a key gauge of economic health.
Friday, August 24
The U.S. is to round up the week with government data on durable goods orders, a key indicator of manufacturing production.