NZD Weekly Forecast – GDP Report on Tap!

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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

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

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

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!