We won’t see major data out from New Zealand this week. That doesn’t mean we won’t see wicked price action though!
Here are catalysts that could rock the Kiwi’s prices:
ANZ business confidence (Oct 31, 12:00 am GMT)
ANZ’s business confidence index fell 2 points to -54% in September, which marked the FOURTH consecutive month of weaker readings for the report.
A closer look told us that firms’ views of their own activities also dipped 1 point. Profit expectations, pricing intentions, commercial construction intensions, and inflation expectations also fell while employment and export intentions showed improvement.
In last month’s release the overall weakness of the report dragged the Kiwi lower at the start of the week.
Will we see further weakness in the next few days? Analysts see the index falling further from -53.5% to -54% but keep close tabs in case we see upside surprises!
Market risk appetite
New Zealand might not have top-tier reports on the docket this week, but it’s a busy data week for the economy’s major trading counterparts.
Australia, for example, will print its quarterly inflation data while China will release October’s official manufacturing and non-manufacturing PMIs.
Meanwhile, risk traders will watch the newswires closely as Britain gets closer to the October 31 Brexit deadline. Until EU officials green light an extension, we could see uncertainty dominate prices of high-yielding currencies like Kiwi.
If that’s not enough action for you, THREE major central banks are also sharing monetary policy decisions. That’s right, the U.S. Federal Open Market Committee (FOMC), Bank of Canada (BOC), and Bank of Japan (BOJ) are all up this week!
The biggest market-mover could be the Fed, which is expected to cut its interest rates for a third time this year. Wowza!
Oh, and don’t forget that Uncle Sam is publishing its closely watched labor market data this week! Market geeks are seeing lower numbers for the month of October, but keep your eyes glued to the tube for any surprises!