No top-tier data from New Zealand this week, so business and overall market sentiment will likely take center stage for Kiwi bulls and bears.
Here are catalysts that might affect NZD’s intraweek trends!
Business confidence reports
- Traders pay attention to business sentiment reports because the Reserve Bank of New Zealand (RBNZ) has been known to include them in its policy decisions
- NZIER’s quarterly business confidence (Jan 13, 9:00 pm GMT) index readings have been deteriorating in the last three quarters. It clocked in at -40 in Q3 3019
- Business NZ manufacturing index (Jan 16, 9:30 pm GMT) printed at 51.4 in November after a 52.6 reading in October
Market risk sentiment
- Chinese Vice Premier Liu He will visit Washington on Jan 13 – 15 to sign China’s “phase one” trade deal with the U.S.
- Word around is that the U.S. and China have agreed to hold semiannual trade talks to help resolve issues and reforms
- China’s quarterly GDP, U.K.’s retail sales, and U.S.’ CPI and retail sales releases can also affect market risk appetite
- GBP/NZD is trading above its 200 SMA but below its shorter SMAs. Watch out for deep retracements or a longer term reversal
- AUD/NZD trading below its long-term SMAs but above its short-term SMAs
- NZD/JPY is trading above its short AND long-term SMAs
- NZD has been most volatile against JPY, CHF, and USD in the last seven days
Missed last week’s price action? Read NZD’s price recap for January 6 – 10!