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Global risk aversion did the Kiwi dirty last week. Luckily, we have a couple of hot catalysts to watch. Think they will push the comdoll higher?
Here’s a list Kiwi bulls and bears need to know about:
Quarterly GDP (June 17, 10:45 pm GMT)
- As expected, the economy slowed down from 0.8% to 0.5% while annualized growth slipped from 2.3% to 1.8% in Q4 2019
- NZD initially fell at the news but found an intraweek low thanks to optimism over major central banks’ stimulus programs
- Analysts see the economy falling by 1.0% in Q1 2020
Top-tier reports from Australia and China
- As China and Australia are New Zealand’s closes trading neighbors, closely watched reports from the regions can affect the demand for the New Zealand dollar
- China has a data dump (fixed asset investment, industrial production, retail sales, unemployment rate) on June 15, 2:00 am GMT
- Australia’s labor market data is due on June 18, 1:30 am GMT
- Australia’s retail sales is on June 19, 1:30 am GMT
Market risk sentiment
- Traders will continue to monitor the COVID-19 cases in the U.S. and around the world to see if a “second wave” will require the return of strict lockdown measures
- The prospect of a “No-Deal Brexit” in the U.K. can limit risk-taking for London session traders
- The European Council meeting is expected to discuss the recovery fund plan to help the region’s hardest-hit economies
- Policy announcements by the BOJ, SNB, and BOE, as well as testimonies by Fed’s Powell can affect markets’ appetite for high-yielding bets like the Kiwi
Technical snapshot
- Stochastic considers NZD as “overbought against AUD, CAD, and GBP on the daily time frame

- EMAs reflect Kiwi’s short and long-term bullish trends against the Loonie and pound
- NZD could see short-term retracements against the safe havens
- Watch out for retracement or reversal opportunities against the Aussie

- NZD has been most volatile against the safe havens and the euro in the last seven days

Missed last week’s price action? Read NZD’s price recap for June 8 – 12!