The New Zealand dollar ended Friday’s session close to a four-week low against its U.S. counterpart, amid speculation that the Federal Reserve could hike U.S. interest rates sooner than expected.
NZD/USD hit 0.8648 on Thursday, the pair’s lowest since June 17, before subsequently consolidating at 0.8688 by close of trade on Friday, up 0.24% for the day but 1.45% lower for the week. The pair is likely to find support at 0.8648, the low from July 17 and resistance at 0.8717, the high from July 17.
Data from the Commodities Futures Trading Commission released Friday showed that speculators increased their bullish bets on the New Zealand dollar in the week ending July 15.
In the week ahead, the U.S. is to release what will be closely watched data on consumer prices, home sales and manufacturing orders, while a rate statement by New Zealand’s central bank will also be in focus.
Tuesday, July 22
- The U.S. is to release reports on consumer price inflation and existing home sales.
- The Reserve Bank of New Zealand 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 central bank is also to hold a press conference to discuss the monetary policy decision.
- New Zealand is also due to release a report on its trade balance.
- The U.S. is to produce data on unemployment claims, manufacturing activity and new home sales.
- New Zealand is to release private sector data on business confidence.
- The U.S. is to round up the week with data on durable goods orders.
