Investing.com - " The New Zealand dollar ended Friday's session
lower against its U.S. counterpart, amid speculation the Federal
Reserve could start tapering its bond-buying program
NZD/USD hit 0.8193 on Wednesday, the pair's lowest since September
17; the pair subsequently consolidated at 0.8260 by close of trade
on Friday, down 0.05% for the day and 0.22% lower for the week.
The pair is likely to find support at 0.8193, the low from October
30 and resistance at 0.8310, the high from October 31.
The dollar gained ground after the Institute of Supply Management
said its manufacturing purchasing managers' index rose to 56.4 in
October, the highest since April 2011, from 56.2 in September.
Economists had expected the index to tick down to 55.0.
The upbeat data fuelled speculation that the Fed may start tapering
its USD85-billion-a-month bond-buying program as soon as next
month, after the central bank sounded more optimistic than
anticipated in its assessment of the economy on Wednesday.
Fed officials stuck to the view that the economy is expanding "at a
moderate pace" and said downside risks were diminishing, sparking
speculation the central bank could start tapering stimulus at its
The kiwi remained supported following the release of upbeat Chinese
manufacturing data. The Asian nation is New Zealand's second
biggest export partner.
China's official purchasing managers' index released earlier in the
day rose to 51.4 in October, the highest in 18 months, from 51.1 in
Meanwhile, in New Zealand, data showed that the ANZ business
confidence index ticked down to 53.2 in October, from a reading of
54.1 the previous month.
On Wednesday, the Reserve Bank of New Zealand opted to keep rates
at a record low of 2.5%.
In a statement following the decision, RBNZ Governor Graeme Wheeler
said, "Sustained strength in the exchange rate that leads to lower
inflationary pressure would provide the bank with greater
flexibility as to the timing and magnitude of future increases in
Traders interpreted those remarks to mean that a rate hike from
RBNZ is further off than previously expected.
Market players anticipated the release of key U.S. economic data in
the week ahead to help assess the timing for a reduction in the
Fed's bond-purchasing program.
On Friday the U.S. is to release the nonfarm payrolls report for
October. The U.S. is also to release preliminary data on third
quarter economic growth on Thursday.
Employment data out of New Zealand scheduled for Wednesday will
also be in focus.
Ahead of the coming week, Investing.com has compiled a list of
these and other significant events likely to affect the markets.
The data skips Wednesday as there are no relevant events on this
Monday, November 4
The U.S. is to release data on factory orders, a leading indicator
Tuesday, November 5
In the U.S., the Institute of Supply Management is to release a
report on service sector activity.
Later Tuesday, New Zealand is to produce a report on the change in
the number of people employed, and the unemployment rate, a leading
Thursday, November 7
The U.S. is to publish a preliminary estimate of third quarter
gross domestic product, the broadest indicator of economic activity
and the leading indicator of economic growth. Meanwhile, the Labor
Department is to release its weekly report on initial jobless
Friday, November 8
The University of Michigan is to release the preliminary reading of
its consumer sentiment index. The U.S. is to round up the week with
the closely watched government data on nonfarm payrolls and the
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