Strong data got nothing on rate cut speculations and risk aversion last week! Can the bulls take some of their pips back this week?
Here are events that might affect the Kiwi’s prices!
ANZ business confidence (Aug 29, 2:00 am GMT)
Business confidence was weak all around in July, as ANZ’s index fell six points to -44.3 and showed weaknesses across the board.
A closer look told us that firms’ views of their own activity fell three points; inflation indicators were weaker, and about 44% of respondents shared their expectations of deteriorating business conditions in the next year. Yipes!
ANZ’s evident weakness, combined with slower manufacturing and services PMIs from China, weighed on the New Zealand dollar and started its intraweek downtrend.
Will we see better numbers this week? Take note that the Reserve Bank of New Zealand (RBNZ) had cut its rates by a whopping 50 basis points in early August. Unless businesses don’t share the central bank’s concerns, then it’s likely that we’ll see even more pessimistic numbers this week.
Market risk appetite
With not a lot of data poppin’ out of New Zealand, Kiwi traders will likely turn to overall risk sentiment for direction.
Keep an eye out for the G7 meetings, which will likely raise updates about Brexit (this will be Boris Johnson’s first G7 appearance), environmental concerns such as Amazon’s fires, Iran’s nuclear deal, and civil unrest in Hong Kong.
And then there’s the U.S.-China trade war that got heated last Friday. In case you missed it, China just announced tariffs on $75 billion worth of U.S. goods, while Trump ordered U.S. manufacturers to look for alternative operation sites other than China.
Keep close tabs on the newswires if you don’t want to miss out on the next market-moving theme this week!
Missed last week’s price action? Read NZD’s price recap for August 19 – 23!