Positive data propped Kiwi into positive territory last week. Which catalysts should you watch out for this week?
Trade balance (Jan 29, 9:45 pm GMT)
- NZ’s trade deficit narrowed down for a third straight month in November, as annualized exports (+7.6%) outpaced imports (+2.0%)
- NZD popped higher during the release, gave its gains back, and then climbed back to its intraday highs until the London session
- Analysts expect New Zealand to return to trade surplus in December
Market risk sentiment
- Coronavirus updates affected NZD prices last week. Keep your eyes peeled for escalating/easing concerns over its extent and potential economic impact
- The European Parliament is expected to approve the EU-UK Withdrawal Agreement on Wednesday and Britain is set to officially leave the EU this week
- Central bank events like the FOMC and BOE’s policy statements can also affect overall market sentiment
- Stochastic identifies NZD as “overbought” against AUD and EUR on the daily time frame
- Williams %R considers NZD as “oversold” against USD
- Bollinger Bands flag NZD as “oversold” against JPY
- AUD/NZD and NZD/CHF are below their short AND long-term SMAs on the daily. EUR/NZD is a hair’s breadth away from the same conditions
- GBP/NZD is above its short AND long-term SMAs on the daily
- NZD/CAD and NZD/USD are trade below their short-term SMAs but above their longer-term SMAs. Watch out for potential retracement or reversals
Missed last week’s price action? Read NZD’s price recap for January 20 – 24!