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New Zealand has a light data calendar this week, which means Kiwi trading will likely depend on countercurrency moves and market risk appetite.

Planning on trading the comdoll?

Here are potential catalysts you should know about:

Quarterly PPI release (Nov 17, 9:45 pm GMT)

  • Input prices saw its biggest decline since Q1 2016, while output prices also dipped by 0.3% after a 0.1% uptick in Q1 2020
  • Trading was dominated by expectation and reaction to the FOMC’s statement, so NZD saw limited reaction to the PPI release
  • Analysts see input prices rising by 0.3% after a 1.0% decline in Q2 2020
  • Output prices could inch 0.1% higher in Q3 2020

Market risk sentiment

  • Coronavirus headlines (number of cases, vaccine prospects, lockdown concerns) will continue to shape risk-taking and the demand for the comdolls
  • Election uncertainty and lack of stimulus in the U.S. can weigh on overall risk appetite this week
  • China’s data dump today at 2:00 am GMT can influence global demand trends and affect high-yielding currencies like NZD
  • AUD’s reaction to Australia’s top-tier releases (jobs numbers, retail sales, RBA events) can also impact NZD’s intraweek trends

Technical snapshot

  • Keltner Channels are flagging NZD/CAD’s “overbought” conditions on the daily time frame
  • The rest of NZD’s major pairs are leaning towards an overbought status
NZD Forex Pairs Keltner Channel from MarketMilk
NZD Forex Pairs Keltner Channel from MarketMilk
  • EMAs reflect the Kiwi’s short and long-term bullish trends on the daily
NZD Forex Pairs EMAs from MarketMilk
NZD Forex Pairs EMAs from MarketMilk
  • Kiwi has seen the most volatility against the yen and the European currencies 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 Nov. 9 – 13!