Trade war updates continued to influence Kiwi’s price action last week. Which catalysts can affect the comdoll this week?
Major data releases from Australia and China
New Zealand doesn’t have much going on data-wise this week, so the New Zealand dollar will probably take cues from top-tier economic reports scheduled in major trading partners such as Australia and China.
Take note that the Reserve Bank of Australia (RBA) is printing its latest monetary policy tomorrow at 5:30 am GMT. While tons of traders expect the central bank to maintain its 1.00% interest rate, we’ll also likely see dovish sentiments from its statement.
Australia’s quarterly GDP is also scheduled this week, and word around is that it could print a lower annualized growth figure even as quarterly growth ticks higher.
Meanwhile, China is releasing the Caixin manufacturing PMI, which should get a lot of attention as traders expect some weakness as the U.S.-China trade war intensifies.
Overall risk appetite
A lack of economic data means Kiwi is once again vulnerable to overall risk sentiment in the markets.This week pay close attention to any updates in the U.S.-China trade conflict. If you recall, a bunch of new tariffs (from both sides) have kicked in yesterday. The good news is that neither party has hinted about slapping on additional tariffs…yet.
Global growth concerns could also factor into the mix this week. Closely watched economic data from the euro zone, for example, could either confirm or calm recession fears. Meanwhile, escalating clashes between protestors and authorities in Hong Kong could also stifle risk-taking.
Missed last week’s price action? Read NZD’s price recap for August 26 – 30!