Kiwi is in for a data light trading week! Can the bulls extend their gains from this week’s potential catalysts?
Here’s a (short) list of factors that can affect the comdoll in the next trading days:
Business NZ manufacturing index (Oct 10, 9:30 pm GMT)
Last month BusinessNZ reported that the manufacturing sector had remained in contraction for a second month, clocking in at 48.4 after July’s 48.1 reading.
BusinessNZ concluded that the PMI pointed to “softening demand” in manufactured goods. Not surprisingly, the bearish report helped drag the Kiwi lower against its major counterparts.
New Zealand won’t be printing a lot (or any) top-tier economic data this week, so BusinessNZ’s release could inspire extra volatility.
Reserve Bank of New Zealand (RBNZ) officials often consider business sentiment reports in their decisions, so you can bet that Kiwi traders will also pay attention to surveys like this one.
Countercurrency price action and market risk sentiment
A light economic calendar means Kiwi is vulnerable to other currencies’ price action and overall risk sentiment.
This week, all eyes will be on the U.S. and China’s latest set of trade-related negotiations. Markets have learned to temper their expectations, so any concrete deal could inspire risk appetite.
Kiwi could also take cues from the escalating U.S. – euro zone trade tensions, of course, but it will likely be more affected by U.S.-China trade related updates.
And then there’s the U.S. dollar’s intraweek trends. The odds of another Fed rate cut have gone down after last week’s U.S. NFP report, but expect interest rate junkies to keep volatility alive as they price in this week’s FOMC meeting minutes and speeches from several FOMC voting members.
Missed last week’s price action? Read NZD’s price recap for Sept. 30 – Oct. 4!