Forexpros – The New Zealand dollar rose against its U.S. counterpart on Friday, trimming some of the week’s losses as new expectations for monetary easing measures by the Federal Reserve sent the greenback broadly lower.
NZD/USD 0.8123 on Wednesday, the pair’s lowest since March 29; the pair subsequently consolidated at 0.8190 by close of trade on Friday, losing 0.53% over the week.
The pair is likely to find support at 0.81159, the low of March 29 and resistance at 0.8236, the high of March 26.
The greenback came under pressure after the U.S. Department of Labor said on Friday that nonfarm payrolls rose by 120,000 in March, far lower than expectations for a 203,000 increase. The previous months figure was revised up to 240,000, from a previously reported 227,000.
In addition, the U.S. unemployment rate ticked down to 8.2%, the lowest since January 2009, from 8.3% in February.
The weaker-than-expected data revived expectations that the Federal Reserve may implement a third round of quantitative easing, which would weaken the dollar.
The kiwi fell to a four-day low against the U.S. dollar on Wednesday after the U.S. Institute for Supply Management said that its non-manufacturing purchasing managers’ index fell more-than-expected in March, ticking down to 56.0 from a reading of 57.3 the previous month.
Analysts had expected the index to fall to 56.9 in March.
The report came after data showing that U.S. non-farm private employment rose by a seasonally adjusted 209,000 in March, beating expectations for an increase of 200,000.
The previous month’s figure was revised up to a gain of 230,000 from a previously reported increase of 216,000.
The greenback strengthened broadly earlier in the week after the minutes of the Fed’s March meeting indicated that policymakers will refrain from launching a third round of easing unless the rate of economic growth falters or inflation drops below the central bank’s 2% targeted rate.
In the week ahead, investors will be eyeing a speech by Fed Chairman Ben Bernanke on Tuesday for any indications on what the future direction of monetary policy may be.
In addition, market participants will be watching developments in the euro zone, amid ongoing concerns over the threat of contagion from Spain.
Ahead of the coming week, Forexpros 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, April 10
Federal Reserve Chairman Ben Bernanke is due to speak at the Federal Reserve Bank of Atlanta Financial Markets Conference.
Wednesday, April 11
New Zealand is to release industry data on business confidence and house price inflation.
In the U.S., government data is to be released on import prices as well as crude oil stockpiles and the federal budget balance. The Fed is also to publish its Beige Book.
Thursday, April 12
The U.S. is to produce official data on the trade balance, as well as government data on producer price inflation and initial unemployment claims.
Friday, April 13
The U.S. is to round up the week with official data on consumer price inflation and a preliminary report by the University of Michigan on consumer sentiment, a key gauge of consumer spending. Fed Chairman Bernanke is also due to speak later Friday.
Forexpros
