The RBNZ crushed the Kiwi pairs across the board last week. Can this week’s catalysts push it back up?
NZIER business confidence (Apr 1, 10:00 pm GMT)
Traders watch the quarterly NZIER business confidence report because New Zealand’s economy depends a lot on its exports and the businesses making it happen. Not only that, but Reserve Bank of New Zealand (RBNZ) members have hinted that they also take cues from the reports when making their policies!
In its January release the report reflected that a net 17% of firms interviewed had expected conditions to deteriorate in the coming months, a bit cheerier than the net 30% who thought so in Q3 2018.
Did businesses feel a bit more optimistic in Q4 2018? Last week’s ANZ business confidence report might not have affected Kiwi pairs for long last week, but I think y’all might want to pay attention to this one!
Market risk sentiment
With not a lot of top-tier data scheduled from New Zealand, it’s highly likely that bulls and bears will look to what’s happening with Kiwi’s counterparts for cues.
This week, pay attention to the RBA’s rate statement, which could mirror the RBNZ’s surprisingly dovish stance from last week. Meanwhile, PMI reports from the euro region could also give cues on the state of global growth.
And then there’s the much-awaited non-farm payroll (NFP) report from the U.S. Now that more traders are worrying about a recession, any upside or downside surprises from the NFP numbers could inspire increased volatility across the board.
Missed last week’s price action? Read NZD’s price recap for March 25 – 29!