Risk appetite and strong economic data propelled the Kiwi to the top of the forex heap last week. Can the bulls maintain the momentum this week?
Here are this week’s possible catalysts:
Trade balance (Jul 23, 11:45 pm GMT)
New Zealand posted a trade surplus of 264M NZD in May, higher than the 200M figure that analysts had expected and the 199M NZD surplus seen in the same month last year.
A closer look told us that exports had increased by 8.5% from a year earlier thanks mainly to higher sales of milk powder, butter, and cheese. Meanwhile, imports popped up by 7.6% on the back of higher petroleum purchases.
Not surprisingly, the better-than-expected report was welcome news to bulls who were jittery ahead of the RBNZ decision at the time.
This week analysts see the surplus tightening to 100M NZD in June.
With no other top-tier data scheduled in New Zealand, you can bet that Kiwi bulls and bears will pay close attention to this one!
Countercurrency price action
We already know from last week’s price movements that Kiwi reacts to catalysts of other major economies.
This week watch how markets react to the euro zone’s PMIs, the ECB’s monetary policy decision, and Uncle Sam’s advance GDP report.
Updates that might cause risk aversion or extreme biases for individual currencies might affect the Kiwi’s intraweek trends, so y’all better keep your eyes peeled for any tradeable news!
Missed last week’s price action? Read NZD’s price recap for July 15 – 19!