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New Zealand has a light data calendar this week, which doesn’t mean that Kiwi won’t see volatility. Here are catalysts to watch out for!

Quarterly PPI (Feb 19, 9:45 pm GMT)

  • Producer input prices rose by 0.9% in Q3 2019 vs. 0.5% expected, 0.3% previous
  • Output prices inched 1.0% higher after a 0.4% slip in Q2
  • The drop in log demand and U.S.-China trade concerns at the time helped drag NZD to its intraweek lows
  • Markets see input prices rising by 0.4% while output prices could accelerate by 0.3%

Market risk sentiment

  • Closely watched reports like U.S., Euro Zone, and Australia’s PMIs and FOMC and RBA’s meeting minutes can affect overall risk appetite
  • Coronavirus concerns can continue to affect demand for the high-yielding NZD

Technical snapshot

  • Stochastic considers NZD as “overbought” against EUR

  • NZD/JPY is “bullish but weakening” on with long-term SMAs but “bearish” on shorter time frames
  • AUD/NZD is “bearish but weakening” on with long-term SMAs but “bullish” with shorter term SMAs