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Welcome to a brand spankin’ new trading week!

Major currencies are in for a busy economic calendar and the Kiwi is no exception.

Check out the catalysts that might affect the comdoll this week!

Quarterly CPI (Jul 15, 10:45 pm GMT)

  • Prices rose by 2.5% in the year to Q1 2020, the highest since Q3 2011
  • Quarterly prices also inched up by 0.8% after a 0.5% gain in Q4 2019
  • New Zealand extending its lockdown measures by a week offset the positive impact of stronger-than-expected inflation numbers
  • Analysts see a 0.4% CPI decline in Q2 2020
  • Annualized prices could only gain by 1.6% (from 2.5%)

Business NZ manufacturing index (Jul 16, 10:30 pm GMT)

Top-tier reports from Australia and China

  • New Zealand does a lot of trade with Australia and China, so top-tier reports from these economies can influence demand for NZ’s exports
  • China’s trade surplus (Jul 14, Asian session) to ease in June as exports are set to improve faster than imports
  • Australia’s labor market readings (Jul 16, 1:30 am GMT) could see the unemployment rate hit 7.5% and a net jobs increase of 110K in June
  • China’s GDP (Jul 16, 2:00 am GMT) to print at 2.4% (from -6.8%) in Q2 2020 while industrial production, retail sales, and unemployment rate are also expected to come in higher than in May

Overall market sentiment

  • Global coronavirus cases and their impact on economic recovery will continue to affect high-yielding currencies like the Kiwi
  • Top-tier reports from other major economies, such as interest rate decisions from BOJ, BOC, and ECB and U.S. retail sales release can also influence market risk appetite

Technical snapshot

  • RSI considers NZD as “overbought” against CAD on the daily time frame
  • Kiwi is also below the 50.0 mark against all of its other major counterparts
NZD Forex Pairs RSI from MarketMilk
NZD Forex Pairs RSI from MarketMilk
  • NZD is generally on short and long-term bullish trends against its counterparts, though it’s trading below the 200 SMA against the AUD
  • Watch out for short-term retracements or longer-term reversals against EUR, GBP, and JPY
NZD Forex Pairs SMA from MarketMilk
NZD Forex Pairs SMA from MarketMilk
  • Kiwi was most volatile against the safe havens and the Loonie 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 July 6 – 10!