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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
NZD Forex Pairs Stochastic from MarketMilk
NZD Forex Pairs Stochastic from MarketMilk
  • Bollinger Bands see NZD as “oversold” against CAD and AUD on the daily time frame
NZD Forex Pairs Bollinger Bands from MarketMilk
NZD Forex Pairs Bollinger Bands from MarketMilk
  • NZD has been most volatile against JPY, USD, CHF, and EUR in the last seven days
NZD Forex Pairs Volatility from MarketMilk
NZD Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read NZD’s price recap for May 11 – 15!