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New Zealand is printing quarterly reports this week!
Will they affect Kiwi’s intraweek trends?
Here are points you need to know!
Producer price index numbers (May 18, 10:45 pm GMT)
- Lower global demand and oil prices could drag on Q1 2020’s prices
- Input prices gained by 0.1% in Q4 2019, much slower than Q3’s 0.9% uptick and the expected 0.4% increase
- Output prices went up by 0.4% after rising by 1.0% in Q3 2019
- A much weaker than expected reading could fan fears of deflation
Retail sales (May 21, 10:45 pm GMT)
- Retail trading rose by 0.7% in Q4 2019, lower than Q3’s 1.7% increase
- NZD ticked higher during the session despite the weak reading and fears of surging coronavirus cases outside China
- Analysts see retail sales falling by 1.5% in Q1 2020
Market risk sentiment
- News on economies reopening should provide support for high-yielding bets like the Kiwi
- PMI reports from the U.S., Euro Zone, U.K., Australia, and Japan will show if major economies have recovered from stricter lockdown measures in the past months
- Escalating economic conflicts between the U.S. and China can weigh on risk appetite
- Powell’s views on policy options and economic forecasts can also affect risk-taking in the markets
Technical snapshot
- Stochastic is flagging NZD’s “oversold” conditions against JPY, CHF, USD, EUR, CAD, and AUD
- Bollinger Bands see NZD as “oversold” against CAD and AUD on the daily time frame
- NZD has been most volatile against JPY, USD, CHF, and EUR in the last seven days
Missed last week’s price action? Read NZD’s price recap for May 11 – 15!