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Welcome to a brand spankin’ new trading month! Here are catalysts to watch if you’re planning on trading the New Zealand dollar.

Building permits (Mar 9:45 pm GMT)

  • Building consents popped up by 9.9% in December after an 8.4% decline in November
  • NZD didn’t react much to the report as much of the jump came from the Department of Corrections’ new investments for prisons
  • Watch out for a potential pullback from December’s strong jump

Data releases from Australia and China

  • Australia will see tons of data releases including its quarterly GDP, trade balance, retail sales, and RBA’s policy decision
  • China will also print its Caixin manufacturing PMIs for January – the first readings since the Coronavirus outbreak

Overall risk sentiment

  • Updates on new Coronavirus cases and their impact on global economic activity will continue to affect the demand for high-yielding currencies like NZD
  • It’s also U.S. NFP week, which could direct focus on USD’s overall trends and retracements
  • Start-of-month top-tier data releases can also inspire volatility among NZD’s major pairs

Technical snapshot

  • RSI believes NZD is “oversold” against EUR, CHF, JPY, and USD on the daily time frame

  • NZD/CAD, NZD/CHF, NZD/JPY, and NZD/USD are all trading below their short AND long-term EMAs on the daily time frame
  • EUR/NZD and GBP/NZD are both trading above their short and long-term EMAs
  • AUD/NZD is trading below its 200 EMA but above its shorter-term EMAs. Watch out for retracement or reversal opportunities

Missed last week’s price action? Read NZD’s price recap for February 24 – 28!