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New Zealand wont’ be printing top-tier reports this week, which means volatility will likely come from countercurrency price action.

Overall market sentiment

  • Traders will continue to pay attention to COVID-19 cases around the world for signs of peaking and maybe a bottom for some markets
  • Closely watched releases like the U.S. initial jobless claims report and BOC’s policy announcement will likely influence appetite for high-yielding currencies like NZD
  • Reports from New Zealand’s trading neighbors like Australia’s labor market numbers and China’s GDP report can also affect demand for export-related Kiwi
  • Watch out for continuation of dollar weakness, which could influence NZD/USD and drive Kiwi’s intraweek trends

Technical snapshot

  • Stochastic believes NZD is “oversold” against AUD
  • NZD might be “oversold” against EUR, CAD, CHF, JPY, and USD on the daily time frame

  • NZD is still generally bearish against its major counterparts
  • NZD may soon see a bearish trend against AUD
  • NZD could turn bullish against CAD on the daily time frame