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Risk aversion weighed on the high-yielding Kiwi last week.

Will this week’s catalysts lift the comdoll?

Check out the potential movers for Kiwi trading in the next few days:

Quarterly unemployment rate (Nov 3, 9:45 pm GMT)

  • The unemployment rate came in at 4.0% in Q2 2020, much better than Q1’s 4.2% and the expected jump to 5.6%
  • The number of workers employed dipped by 0.4% after a 1.0% gain in Q1 2020
  • NZD jumped across the board at the strong report but lost ground to risk aversion when the U.S. printed a weak ADP report
  • Analysts see the jobless rate jumping to 5.4% in Q3 to reflect the lockdowns
  • There may be another 0.7% decrease in employment
  • Traders will likely pay more attention to the U.S. election results

Market risk sentiment

  • The rising number of coronavirus cases around the world and its impact on global growth (and demand) will continue to affect commodity-related currencies like the Kiwi
  • The U.S. elections will also influence risk-taking. A contested win could take a toll on risk sentiment
  • Policy decisions by the RBA, BOE, and the FOMC can inspire volatility during the releases
  • Traders will also look to the U.S. NFP report on Friday for volatility. Watch out for countercurrency volatility

Technical snapshot

  • Stochastic considers the Kiwi “overbought” against the Aussie, euro, and the Loonie on the daily time frame
  • NZD/JPY may soon hit “oversold” territory
NZD Forex Pairs Stochastic from MarketMilk
NZD Forex Pairs Stochastic from MarketMilk
  • EMAs show NZD’s short and long-term bullish trends against AUD, EUR, and CAD
  • Watch out for retracement or reversal opportunities on NZD/JPY, NZD/CHF, and GBP/NZD
NZD Forex Pairs EMAs from MarketMilk
NZD Forex Pairs EMAs from MarketMilk
  • Kiwi saw the most volatility against the safe havens in the last seven days
NZD Forex Pairs Volatility from MarketMilk
NZD Forex Pairs Volatility from MarketMilk