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Can a lack of fresh market catalyst highlight New Zealand’s fundamentals and boost the Kiwi this week?

I’ve got a list of the potential themes that might move the comdoll in the next few days.

Check it out!

Quarterly PPI (Feb 18, 9:45 pm GMT)

  • Producer input prices jumped by 0.6% in Q3 2020 after a downwardly revised 0.9% dip in Q2
  • Output prices declined by 0.3%, a bit faster than the 0.2% dip in the previous quarter
  • NZD dropped to its intraweek lows at the news but eventually recovered during the London and U.S. sessions
  • Significantly higher prices could help prevent the Reserve Bank of New Zealand (RBNZ) from being as dovish as the Reserve Bank of Australia (RBA), which would help support NZD across the board

Market risk appetite

  • PMI releases from major economies like the U.S., U.K., Eurozone, Japan, and Australia will paint a picture of global economic recovery and influence overall risk-taking
  • Vaccination and lockdown plans from around the world can affect risk appetite and the demand for high-yielding currencies like the Kiwi
  • Profit-taking from NZD’s strong performance in the last few weeks had weighed on the comdoll last week. Watch out for some NZD strength as the impact of squaring these positions ease

Technical snapshot

  • NZD has hit “oversold” Stochastic conditions against AUD and GBP
  • Stochastic considers NZD/JPY “overbought” on the daily time frame
  • NZD/USD may also hit overbought levels soon
NZD Forex Pairs Stochastic from MarketMilk
NZD Forex Pairs Stochastic from MarketMilk
  • Exponential moving averages show Kiwi’s short-term bearish pressure against AUD, EUR, GBP, CAD, and CHF
  • NZD/USD and NZD/JPY remain on short and long-term bullish trends
NZD Forex Pairs EMAs from MarketMilk
NZD Forex Pairs EMAs from MarketMilk
  • NZD saw the most volatility against the safe-havens and the pound in the last seven days
NZD Forex Pairs Volatility from MarketMilk
NZD Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read NZD’s price recap for Feb. 8 – 12!