Welcome to a brand spankin’ new trading week!
Can the bulls maintain their momentum and push the Kiwi to the top spot again?
Here are catalysts you should pay attention to:
Trade balance (May 25, 10:45 pm GMT)
- Trade surplus widened from 531M in February to 672M NZD in March
- NZD rose thanks to exports hitting a record high and markets optimistic about economies reopening post pandemic
- Analysts see the surplus doubling to 1,270M NZD in April
ANZ business confidence (May 28, 1:00 am GMT)
- The Reserve Bank of New Zealand (RBNZ) considers business surveys in its policy decisions so you should watch it too
- Business confidence improved from -66% to -46% in April
- NZD popped higher at the release though it gave in to intraday weakness in the middle of the Asian session
Market risk sentiment
- Optimism and concerns over more economies reopening during a pandemic will continue to affect the high-yielding Kiwi’s prices
- Stimulus talks from both the RBNZ and other global authorities can also affect demand for NZD
- As an exporter, major headlines over the U.S.-China tensions will impact NZD’s intraweek prices
Technical snapshot
- Stochastic believes that NZD is “overbought” against the GBP, CAD, JPY, and USD on the daily time frame
- Kiwi is still on a downtrend against Aussie
- NZD is bullish across short and long-term EMAs against GBP
- NZD is trading around 3% below the 200 EMAs against the safe havens
- NZD has seen the most volatility against JPY, USD, GBP, and CHF in the last seven days
Missed last week’s price action? Read NZD’s price recap for May 18 – 22!
