Forex - NZD/USD weekly outlook: April 22 - 26

A A A - The New Zealand dollar ended Friday's session little changed against its U.S. counterpart, as worries over the outlook for global economic growth continued to weigh on appetite for growth-linked assets.

NZD/USD hit 0.8376 on Monday, the pair's lowest since April 5; the pair subsequently consolidated at 0.8417 by close of trade, losing 1.99% for the week.

The pair is likely to find support at 0.8376, Monday's low and resistance at 0.8490, Friday's high.

Worries over the global economy intensified earlier in the week after the International Monetary Fund cut its 2013 forecast for global growth to 3.3%, down from its January projection of 3.5%.

The growth projection for China was trimmed to 8% from 8.2%, while the growth outlook for the U.S. was lowered to 1.9% from 2%.

The IMF also said that the euro zone remains the weakest part of the global economy.

Meanwhile, in New Zealand, official data released earlier in the week showed that consumer price inflation rose 0.4% in the first quarter, in line with expectations, after a 0.2% decline in the previous quarter.

In the week ahead, investors will be awaiting Friday's U.S. data on first quarter growth amid lingering concerns that the U.S. economic recovery is losing momentum.

Markets will also be focusing on the outcome of a policy meeting by the Reserve Bank of New Zealand for indications on the future of its monetary policy.

Ahead of the coming week, has compiled a list of these and other significant events likely to affect the markets.

Monday, April 22

The U.S. is to release private sector data on existing home sales, a leading indicator of demand in the housing market.

Tuesday, April 23

China is to publish its HSBC manufacturing index, a leading economic indicator. China is New Zealand's second biggest export partner.

Meanwhile, the U.S. is to produce official data on new home sales as well as preliminary data on manufacturing activity.

Wednesday, April 24

The RBNZ is to announce its benchmark interest rate. The announcement is to be accompanied by the bank's rate statement, which contains important insights into the economic outlook.

The U.S. is to release government data on durable goods orders, a leading indicator of production, as well as data on crude oil inventories.

Thursday, April 25

Markets in New Zealand are to remain closed for a national holiday

The U.S. is to produce the weekly government report on initial jobless claims later in the trading day.

Friday, April 26

New Zealand is to publish official data on the trade balance, the difference in value between imports and exports.

The U.S. is to round up the week with preliminary data on first quarter growth, the broadest indicator of economic activity and the leading measure of the economy's health.

The U.S. is also to release revised data from the University of Michigan on consumer sentiment and inflation expectations. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Forex and Currencies

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