Investing.com - The New Zealand dollar fell sharply against the
U.S. dollar on Friday, as the release of data showing inflation in
China accelerated at the fastest pace in seven months in December
dampened hopes for near-term stimulus measures from Beijing.
NZD/USD hit 0.8459 on Friday, the pair's highest since December 17;
the pair subsequently consolidated at 0.8358 by close of trade,
0.53% higher for the week.
The pair is likely to find support at 0.8333, the low from January
8 and resistance at 0.8459, Friday's high.
The kiwi retreated from a three-week high on Friday after official
data showed that consumer price inflation in China rose to 2.5% in
December, up from 2% in November and above expectations for a 2.3%
Politically sensitive food costs accelerated 4.2% in December from
a year earlier. The rise in Chinese food costs was driven by a
14.8% increase in the price of vegetables.
The higher-than-expected reading dampened expectations Beijing will
introduce fresh monetary easing measures in the near-term to prop
up the world's second largest economy.
The New Zealand dollar rallied on Thursday after government data
showed that China's trade surplus widened unexpectedly in December,
adding to signs of recovery in the world's second largest economy.
Chinese exports grew 14.1% from a year earlier in December, blowing
past expectations for a 5% gain and up from a 2.9% increase in
Imports expanded by 6% from a year earlier, beating expectations
for a 3.5% increase and following on from zero growth the previous
China is New Zealand's second biggest export partner.
Risk appetite received a further boost Thursday after the European
Central Bank kept interest rates unchanged at 0.75% and President
Mario Draghi said a gradual economic recovery would begin this
Some investors had expected the ECB to hint a possible rate cuts in
the coming months going into Thursday's policy meeting.
In the week ahead, investors will be anticipating a speech by
Federal Reserve Chairman Ben Bernanke on monetary policy and the
recovery from the global financial crisis on Monday, as well as
Tuesday's data on U.S. retail sales for December.
Data from China on fourth quarter gross domestic product and
industrial production will also be closely watched.
Ahead of the coming week, Investing.com has compiled a list of
these and other significant events likely to affect the markets.
Monday, January 14
In the U.S., Fed Chairman Ben Bernanke is to speak at the
University of Michigan; his comments will be closely watched for
any indications on the future possible direction of monetary
Later Monday, New Zealand is to produce a report on business
Tuesday, January 15
The U.S. is to publish government data on retail sales, the leading
indicator of consumer spending, which comprises the majority of
economic activity, as well as official data on producer price
In addition, the U.S. is to release data on manufacturing activity
in New York state and a report on business inventories.
Wednesday, January 16
The U.S. is to produce government data on consumer inflation, in
addition to data on industrial production and the capacity
The country is also to publish official data on crude oil
stockpiles, while the Fed is to publish its Beige Book, which looks
at current economic conditions.
Thursday, January 17
The U.S. was to produce official data on building permits, a
leading indicator of future construction activity, as well as data
on housing starts. The U.S. was also to release the weekly
government report on initial jobless claims and data on
manufacturing activity in Philadelphia.
Later Thursday, New Zealand is to publish official data on consumer
Friday, January 18
The U.S. is to round up the week with preliminary data from the
University of Michigan on consumer sentiment, a leading indicator
of consumer spending.
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.
Read more News on Investing.com or Follow us on Twitter at @