NZD Weekly Forecast (Jan. 20 – 24)

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The New Zealand dollar ended the previous week on a mixed note. Can this week’s catalysts inspire one-directional moves?

Quarterly CPI report (Jan 23, 9:45 pm GMT)

Prices went up by 0.7% in Q3 2019, higher than the 0.6% increase seen in Q2 and what markets had expected
Inflation is at 1.5% on an annualized basis. It’s lower than Q2’s 1.7% growth but higher than estimates of a 1.4% gain. Turned out, lower transport costs dragged on prices
NZD spiked higher after the release, but soon traded lower after the RBNZ hinted of lower interest rates
Analysts see quarterly prices at 0.4%, while annualized readings could improve to 1.8%

With no major updates expected from the U.S.-China trade negotiations, traders could focus on top-tier reports like U.S., Euro Zone, and U.K.’s PMI releases
Central bank events like the BOJ, BOC, PBoC, and ECB’s policy decisions can also affect demand for higher-yielding bets
Oil prices can also take center stage as markets look to political updates in Libya and Iraq for price direction

AUD/NZD, EUR/NZD, and NZD/CHF are all trading below their short AND long-term EMAs on the daily
NZD/JPY is trading above its short and long-term EMAs on the daily time frame
NZD/CAD and NZD/USD are trading above their long-term EMAs but below their short-term EMAs. Watch out for retracement or reversal opportunities

Missed last week’s price action? Read NZD’s price recap for January 13 – 17!