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A dovish RBNZ and fresh lockdowns in the region weighed on the Kiwi last week. Can the bulls gain some of their pips back this week?

Here are themes you can pay attention to:

Quarterly PPI report (Aug 18, 11:45 pm GMT)

  • Input prices dipped by 0.3% in Q1 2020 (vs. 0.3% uptick in Q4 2019)
  • Output prices inched 0.1% higher after 0.5% growth in Q4 2019
  • Hints of further action from the Reserve Bank of New Zealand (RBNZ) and a risk-friendly trading environment helped push NZD higher during the Asian session
  • Input prices could rise by 0.1% in Q2 2020
  • Output prices are seen at 0.3% for the period

Countercurrency price action

  • Meeting minutes from major central banks like the FOMC, ECB, and RBA can paint a clearer picture of near term monetary policy responses around the globe
  • PMI reports from the European region and the U.S. will hint at the pace of recovery after the stricter lockdown measures are lifted
  • Coronavirus cases in New Zealand will continue to impact NZD’s prices. Watch out for news on lockdown plans, vaccine updates, and stimulus prospects from other major economies

Technical snapshot

  • RSI considers NZD “oversold” against AUD, EUR, and GBP on the daily time frame
  • NZD/USD and NZD/JPY remain near the neutral zone
NZD Forex Pairs RSI from MarketMilk
NZD Forex Pairs RSI from MarketMilk
  • Daily EMAs show NZD’s short and long-term bearish trends against most of its counterparts
  • Watch out for retracement opportunities in NZD/USD and NZD/JPY
NZD Forex Pairs EMAs from MarketMilk
NZD Forex Pairs EMAs from MarketMilk
  • NZD saw the most volatility against JPY, CAD, GBP, and USD 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 August 10 – 14!