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A dovish RBNZ statement didn’t stop Kiwi bulls from dominating last week. Will they extend their gains with this week’s catalysts?

Quarterly NZIER business confidence (Jul 1, 11:pm GMT)

In its last quarterly release New Zealand Institute of Economic Research (NZIER) showed further decline in business confidence in Q1 2019.

27% had expected deterioration in general economic conditions. Businesses across sectors had also reported weaker domestic demand, while the building sector reflected weaker construction demand.

Overall, the numbers pointed to weak activities in the second half of 2019 and dragged the Kiwi lower across the board.

This week analysts will want to see if overall conditions will improve from the -29 index reading in Q1.

New Zealand’s central bankers have hinted that they consider business confidence in their monetary policy decisions. That means y’all should definitely pay attention to reports like these!

Overall risk sentiment

Unless you missed last week’s price review, you should know that Kiwi bulls made pips rain last week even though the Reserve Bank of New Zealand (RBNZ) published announced “dovish hold” in its monetary policy statement.

Word around is that investors weren’t too worried over a dovish RBNZ when other major central banks like the Fed, ECB, and RBA are ready and willing to stimulate their economies in the foreseeable future.

Aside from central bank rhetoric, keep your eyes peeled for any global trade updates. The U.S. had just gotten “back on track” with China over trade negotiations after Trump met with Xi Jinping over the weekend.

Both sides have shared that they will hold off from further tariffs, with the Donald also hinting that he will step the pedal off the metal over Huawei’s business restrictions.

Last but not the least are top-tier reports from New Zealand’s best trading partners. China’s official PMIs are up, while the RBA just might cut its rates further this week. Stay tuned!

Missed last week’s price action? Read NZD’s price recap for June 24 – 28!