New Zealand is scheduled to print top-tier reports this week, which means Kiwi traders will likely focus on countercurrency moves and market risk sentiment.
Which themes can dominate Kiwi’s price action?
I’ve got a short list!
- Traders pay attention to business-related releases because the Reserve Bank of New Zealand (RBNZ) considers business sentiment in its monetary policies
- Quarterly manufacturing sales (Sept 8, 10:45 pm GMT) to drop by 12.0% after an annualized decrease of 1.9% in Q1 2020
- ANZ business confidence (Sept 9, 1:00 am GMT) printed an improvement from -42.4 to -41.8 in August
- Business NZ manufacturing index (Sept 10, 10:30 pm GMT) expected to dip from 58.8 to 58.2 in August
Countercurrency moves and overall risk sentiment
- Closely watched reports from Australia and China – New Zealand’s top trading partners – can influence NZD’s intraweek trends
- There aren’t a lot of top-tier reports scheduled from the other major economies this week, so watch out for potential profit-taking in the markets
- Pandemic-related updates like the number of cases, lockdown prospects, vaccine progress, and stimulus projections can still affect the demand for the high-yielding Kiwi
- Stochastic considers the Kiwi overbought against almost all of its major counterparts on the daily time frame
- SMAs hint of NZD seeing short-term bearish pressure across the board
- Watch out for retracement or reversal opportunities on AUD/NZD
- Kiwi saw the most volatility against the safe havens and the euro in the last seven days