New Zealand dollar climbed last week against the most major currencies as measures to contain the debt crisis in Europe fueled optimism and a rally across the board which supported kiwi and weakened the dollar. Demand for the kiwi was supported after Reserve Bank Governor Alan Bollard signaled that borrowing costs may need to rise as the domestic economy rebounds next year.
Kiwi increased against its major currencies, while it continued its upside movement versus the US dollar after the Asian stock markets rose, increased the demand for higher yielding currencies.
The commodities prices increased, which supported the New Zealand’s currency to gain versus the American dollar, also it increased after data showed consumer confidence rose.
Meanwhile, the New Zealand economy is benefiting from demand from developing nations, where the demand for raw materials is increasing, especially from China, which is supporting the manufacturing sector and accordingly Kiwi’s upside movement.
This week we will focus on the market sentiment and developments in Europe that keeps markets sensitive and also turn to the United States for key data. From New Zealand the labor data are also the most critical for the week as we assess the ongoing recovery in the nation.
The FOMC from the U.S. and the infamous October jobs report will have the main focus this week as investors need to see more positive signs to ensure sustained growth, especially as the GDP from the states last week helped as well in easing recessionary fears and the worries over the outlook.
Major highlights for this week that will affect the NZD/USD pair’s trading
Monday October 31:
The New Zealand economy is to start the week’s fundamental data with the building permits index for September at 21:45 GMT (Sunday), after in August it surged 12.5%.
At 02:00 GMT, New Zealand will issue the money supply M3 for the year ending September where the preceding reading inclined 5.5%.
At 13:45 GMT, the U.S. economy will release the Chicago Purchasing Manager for October which is expected to ease to 59.0 from 60.4.
Tuesday November 01:
At 21:45 GMT (Monday) NZD average hourly earning for the third quarter is due after it recorded a 1.2% rise in the second quarter.
The U.S. economy will issue the Construction Spending for September at 14:00 GMT, where it’s expected to come at 0.3% from the prior reading of 1.4%.
The ISM Manufacturing for October will be released at the same time, and expected at 52.3 from the previous reading of 51.6.
Wednesday November 02:
The U.S. economy will release the ADP employment change for August at 12:15 GMT, where it’s expected at 101 thousands from the previous reading of 91 thousands.
At 16:30 GMT, the Federal Open Market Committee will announce its Rate Decision, which is expected to be steady between 0.0% and 0.25%; and at 18:15 GMT Fed’s Governor Bernanke will speak at the Fed Press Conference.
Thursday November 03:
On Thursday eyes will be focused on the most important data this week from New Zealand. The unemployment figures for the third quarter at 21:45 GMT. Unemployment is expected to fall to 6.4% from 6.5% and employment change is expected to rebound with 0.6% after it remained unchanged the previous quarter.
At 12:30 GMT, the U.S. economy will issue the Non-Farm Productivity for the third quarter, where the preliminary reading is expected to come at 2.5% from the prior reading of – 0.7%.
The Unit Labor Costs for the third quarter is expected to come at -0.4% from the previous reading of 3.3%.
At 12:30 GMT, U.S. economy will issue its weekly initial claims numbers, where the number of people filing for first-time claims for the state unemployment insurance increased 402 thousand last week.
The U.S. ISM Non-Manufacturing Composite for September will be released at 14:00 GMT, where it’s expected to come at 54.0 from the prior reading of 53.0.
Friday November 04:
The United States of America will release the non-farm payrolls at 12:30 GMT, which is expected to show that the U.S. economy added 100 thousand jobs during the month of October compared with the previous reading of 103 thousand jobs.
Unemployment rate during the month of October is expected to be steady at 9.1%, while the yearly average hourly earnings index had a previous reading of 1.9%.
See what are the upcoming financial event on the FX Empire Economic Calendar now!
