Kiwi bulls weren’t able to maintain their lead last week. Can this week’s events push the comdoll higher?
Here are key events you should take note of:
ANZ business confidence (Dec 17, 12:00 am GMT)
- Business confidence and activity rocketed by double digits to highest levels this year
- The better-than-expected numbers helped NZD weather news of Trump signing the Hong Kong bill
- Will ANZ’s report top its jump from -42.4 to an index reading of -26.4 in December?
Quarterly GDP (Dec 18, 9:45 pm GMT)
- GDP grew by 0.5% in Q2 2019, slower than 0.6% uptick in Q1 but higher than 0.4% expected growth
- Annualized growth slowed down to 2.1%, the lowest since Q1 2013
- The services sector continues to drive growth, while manufacturing and construction dragged on the economy
- Analysts see New Zealand’s quarterly growth maintaining at 0.5%
- Annualized growth could further slow to 2.0%
Market risk sentiment
- Traders will wait for China’s confirmation on Trump’s working Phase One deal
- Watch out for potential spillover from Australia and China’s top-tier releases
Technical snapshot
- RSI and Bollinger Bands point to NZD being “overbought” against USD and JPY
- Williams %R considers NZD as “overbought” against USD, JPY, and EUR and almost overbought against CAD
- Stochastic flags NZD as “overbought” against USD, JPY, EUR, and CAD
- AUD/NZD, and EUR/NZD are “bearish” across short and long-term daily SMAs
- GBP/NZD, NZD/CAD, NZD/JPY, and NZD/USD are “bullish” across short and long-term daily SMAs
- NZD/CHF is a hair’s breadth away from being bullish across the board
Missed last week’s price action? Read NZD’s price recap for December 9 – 13!
