Another light trading week ahead for the New Zealand dollar. Which catalysts can move the Kiwi this time around?
Business NZ manufacturing index (Mar 14, 9:30 pm GMT)
Manufacturers’ concerns matter a lot for New Zealand’s policymakers, so this particular report tends to get attention among Kiwi traders.
In last month’s release, we found out that the PMI had slipped from 54.8 to 53.1 for the month of January. The weakness was widespread, with production, new orders, finished stocks, and deliveries taking hits. Employment remained steady for the month, however.
Luckily for the bulls, better-than-expected Chinese data printed later in the trading session pushed the Kiwi higher across the board.
Can the index print better results in February? The Bank of Japan (BOJ)’s monetary policy decision is the only other potential market-mover during the session, so it’s likely that significant hits or miss in the report could set the tone for Kiwi’s intraday price action.
Market risk sentiment
New Zealand might not have a lot going for it in terms of domestic data, but that doesn’t mean that it won’t see volatility this week!
As you can see on your forex calendars, China is set to dump a bunch of top-tier data that includes the latest on industrial production, retail sales, fixed asset investment, and unemployment rate. The U.S., U.K., and the EU are also scheduled to print top-tier reports that could rock the markets.
And then there’s the tiny issue of British lawmakers deciding on whether (a) they would support Theresa May’s Brexit deal, (b) whether they want to pursue a no-deal Brexit, or (c) they want the Brexit delayed.
Uncertainty is NOT a friend of risk-takers who like buying high-yielding comdolls, so y’all better make sure you’re around when the reports are released!
Missed last week’s price action? Read NZD’s price recap for March 4 – 8!