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A lack of economic data left the Kiwi vulnerable to risk sentiment last week. Will we see the same trends this time around?

Here are potential catalysts you need to watch out for:

Quarterly CPI

  • Consumer prices rose by 0.8% in Q1 2020, higher than Q4 2019’s 0.5% growth
  • Annual inflation is at 2.5%, the highest since September 2011
  • The report warned that “some parts of the CPI may not fully capture COVID-19-related price movements”
  • NZD has shown little immediate reaction beyond slipping a few pips against USD

Market risk sentiment

  • Analysts will continue to look at coronavirus-related updates to gauge global demand trends
  • High-yielding bets like NZD tend to have a direct correlation with market’s risk appetite
  • Top-tier reports from other major economies including PMIs from the euro zone and Australia, and U.K.’s retail sales data can influence overall risk-taking

Technical snapshot

  • Stochastic has noted NZD’s “oversold” status against AUD on the daily time frame
  • NZD seems to be leaning towards being “overbought” against its other major counterparts

  • NZD is on short and long-term bearish trends against AUD, JPY, and GBP on the daily time frame
  • NZD could see retracements or reversals against CHF, EUR, and USD

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