Forex - NZD/USD weekly outlook: February 23 - 27

Investing.com - The New Zealand dollar inched higher against its U.S. counterpart on Friday, after euro zone finance ministers agreed on a deal to extend Greece’s bailout by four months, boosting demand for riskier assets.

NZD/USD hit 0.7573 on Wednesday, the pair's highest since January 22, before subsequently consolidating at 0.7526 by close of trade on Friday, up 0.11% for the day and 0.94% higher for the week.

The euro zone approved the extension of Greece’s €240 billion bailout, removing concerns that the country would face a liquidity crunch when its current bailout agreement expired at the end of the month.

Athens has until Monday to present a list of reforms to be approved by the country’s creditors in order to secure the four-month extension, which will give it more time to reach a lasting agreement with its creditors.

Meanwhile, the greenback remained under pressure after the minutes of the Federal Reserve’s January meeting released earlier in the week showed that some officials thought that raising rates too soon could weigh on the U.S. economic recovery.

The dovish minutes prompted investors to push back expectations for the first U.S. rate hike to at least the second half of this year.

In the coming week, Tuesday’s testimony by Fed Chair Janet Yellen to the Senate Banking Committee will be closely watched for any indication on when U.S. interest rates may start to rise.

Traders will also be watching Monday’s deadline on Greece's financial rescue package.

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

Monday, February 23

Markets in China are to remain closed for a national holiday.

The U.S. is to publish a report on existing home sales.

Tuesday, February 24

Markets in China are to remain closed for a national holiday.

The U.S. is to produce a private sector report on consumer confidence. Meanwhile, Fed Chair Janet Yellen is to testify on the Semiannual Monetary Policy Report before the Senate Banking Committee, in Washington.

Wednesday, February 25

China is to release the preliminary reading of the HSBC manufacturing index.

The U.S. is to release data on new home sales.

Later in the trading day, New Zealand is to produce figures on the trade balance.

Thursday, February 26

The U.S. is also to release data on initial jobless claims, consumer price inflation and durable goods orders.

Friday, February 27

New Zealand is to release a private sector report on consumer confidence.

The U.S. is to round up the week with revised data on fourth quarter growth, as well as reports on pending home sales, business activity in the Chicago region and consumer sentiment.