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Welcome to a fresh trading week!

There aren’t a lot of closely watched potential catalysts on tap for most of the major economies, which means Kiwi traders may once again look to risk sentiment for direction.

Here are the major themes you should pay attention to if you’re trading the comdoll:

Trade balance (Jul 23, 10:45 pm GMT)

  • New Zealand’s trade surplus eased from 1,339M to 1,253M in May
  • Pandemic response was evident in 90M worth of face mask imports and a 49-M increase in respiration equipment exports
  • NZD inched higher at the news though it might have helped that the U.S. had also eased financial regulations at the time

Market risk sentiment

  • Coronavirus cases, stimulus and vaccine prospects, and economic reopening headlines will continue to affect intraweek trends of high-yielding currencies like Kiwi
  • Watch out for updates on another stimulus package in the U.S.
  • PMI reports from major economies will paint a picture of global post-lockdown growth

Technical snapshot

  • RSI isn’t seeing oversold or overbought conditions on the daily time frame yet
  • Kiwi may soon become overbought against the dollar, pound, yen, and Loonie
  • NZD remains neutral against the Aussie, euro, and franc
NZD Forex Pairs RSI from MarketMilk
NZD Forex Pairs RSI from MarketMilk
  • Kiwi is on short and long-term uptrends against the dollar, pound, yen, and Loonie
  • NZD/AUD is on short and long-term bearish trends on the daily time frame
  • Watch out for retracement or reversal opportunities against the euro
NZD Forex Pairs EMA from MarketMilk
NZD Forex Pairs EMA from MarketMilk
  • NZD has seen the most volatility against the franc, dollar, euro, and 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 13 – 17!