Countercurrency moves helped the Kiwi weather risk aversion and gain pips last week. Which catalysts can move it around this time?
RBNZ’s financial stability report (May 28, 10:00 pm GMT)
Twice each year the Reserve Bank of New Zealand (RBNZ) publishes a report that details its insights on growth, inflation, and other economic conditions that might affect monetary policymaking in the foreseeable future.
We already know that Governor Orr and his team cut their rates to a record low earlier this month. Thing is, they also signaled that they might do it again soon.
Watch out for hints on the central bank’s dovishness even after a fresh rate cut. If the statement is too TL;DR for you, then you could also get clues from Orr’s presser on May 29 at 12:00 am GMT, or his testimony before the Parliament Select Committee on May 29 at 2:00 am GMT.
ANZ business confidence (May 29, 2:00 am GMT)
Business confidence data barely changed in April. That is, around 38% of ANZ Research’s respondents still reported that they expect general business conditions to deteriorate in the year ahead.
Did businesses become more optimistic in May? Or did global trade tensions and speculations of rate cuts from the RBA and RBNZ add to their worries?
New Zealand’s central bankers often cite business confidence reports in their speeches, so y’all can bet that other traders will be watching this release, too.
Missed last week’s price action? Read NZD’s price recap for (May 20 – 24)!