Investing.com - The New Zealand dollar ended the week close to a two-month low against its U.S. counterpart on Friday, as investors monitored geopolitical tensions in Ukraine and Iraq.
NZD/USD hit 0.8422 on Wednesday, the pair’s lowest since June 5, before subsequently consolidating at 0.8462 by close of trade on Friday, down 0.17% for the day and 0.61% lower for the week.
The pair is likely to find support at 0.8422, the low from August 6 and resistance at 0.8493, the high from August 7.
Fears over hostilities between Russia and Ukraine eased on Friday after Russia’s defense ministry said it had concluded military exercises it was holding close to the border with Ukraine.
NATO warned earlier in the week that Russia massed around 20,000 combat-ready troops on Ukraine's border in preparation for a possible ground invasion.
Meanwhile, U.S. President Barack Obama authorized air strikes in Iraq to halt a Sunni insurgency there and to protect Iraqi civilians from the uprising as well as U.S. personnel in the country.
The New Zealand dollar had dropped to two-month lows against the greenback on Wednesday, after data showed that the number of employed people in New Zealand rose less than expected in the last quarter, although the unemployment rate fell more than markets had anticipated.
Data from the Commodities Futures Trading Commission released Friday showed that speculators decreased their bullish bets on the New Zealand dollar in the week ending August 5.
Net longs totaled 14,500 contracts, down slightly from net longs of 15,289 in the preceding week.
In the week ahead, investors will continue to monitor geopolitical risk, while a U.S. report on July retail sales will also be in focus for further clues about the strength of the economy and the timing of future interest rate hikes.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Monday and Tuesday as there are no relevant events on these days.
Wednesday, August 13
China is to release a report on industrial production. The Asian nation is New Zealand’s second-largest trade partner.
The U.S. is to publish data on retail sales and business inventories.
Thursday, August 14
New Zealand is to release data on retail sales as well as a private sector report on manufacturing activity.
The U.S. is to release the weekly report on initial jobless claims.
Friday, August 15
The U.S. is to round up the week with reports on manufacturing activity in New York state and industrial output, as well as preliminary data on consumer sentiment.