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A mix of economic themes pushed the Kiwi all over the charts last week.

Will the comdoll find one-directional trends with this week’s set of catalysts?

Here are the major events you need to take note of:

Quarterly labor market data (May 5, 10:45 pm GMT)

  • Unemployment rate dipped from 4.2% to 4.0% in Q4 2019, while wages had risen by its fastest rate since 2009
  • The report pointed to the RBNZ keeping its rates unchanged, which helped boost NZD for the first hour or two after the data release
  • Analysts see the unemployment rate jumping from 4.0% to 4.5% in Q1 2020
  • Employment could dip by 0.2% while labor force participation rate might ease from 70.1% to 69.9%

Inflation expectations (May 7, 3:00 am GMT)

Overall risk sentiment

  • Updates on coronavirus cases, drug or vaccine prospects, and policy responses will continue to affect the high-yielding comdoll’s prices
  • Tier 1 events, such as the U.S. NFP, RBA’s policy statement, and China’s trade data can also impact NZD’s trading
  • Escalating fears of a renewed U.S.-China trade war can continue to weigh on NZD’s prices

Technical snapshot

  • Williams %R considers NZD as “oversold” against EUR and CHF on the daily time frame

  • Short and long-term SMAs point to NZD being in bearish trends against EUR, GBP, CHF, JPY, and USD
  • Kiwi is still on a bullish trend against CAD but we could see retracements soon
  • Watch out for a short-term retracement or a longer-term reversal against AUD

Missed last week’s price action? Read NZD’s price recap for April 27 – May 1!