Looks like Kiwi traders still take cues from overall risk sentiment.
Will we see more risk appetite this week?
While we wait for new catalysts, check out the themes that might affect the comdoll’s prices!
Lower-tier economic releases
- New Zealand October retail sales soar after lockdown ends
- Trade deficit (Nov 25, 9:45 pm GMT) is expected to double to 2.7M NZD in October as post-lockdown activity increases imports
RBNZ’s financial stability report (Nov 24, 8:00 pm GMT)
- After recently hinting at negative interest rates, all eyes will be on the Reserve Bank of New Zealand’s (RBNZ) Financial Stability Report for clues on its aggressiveness to stimulate the economy
- Watch out for hints that central bankers are getting uncomfortable with NZD’s strength
- Governor Orr will conduct a presser on Nov 25 at 2:00 am GMT
Market risk sentiment
- After weeks of strong gains, NZD is one of the most vulnerable to profit-taking or risk aversion this week
- PMI reports from major economies (Eurozone, U.S., U.K.) could highlight the impact of the latest planned and implemented lockdowns amidst the second wave of virus infections
- As in the previous weeks, traders will look to any RBNZ event to see how eager it is to enforce a negative interest rate
- RSI considers NZD/USD and NZD/CAD “overbought” on the daily time frame
- Most of the major NZD pairs are also near overbought conditions
- Daily EMAs (and SMAs, actually) show the Kiwi’s short and long-term bullish trends on the daily
- NZD has seen the most volatility against the safe havens and the euro in the last seven days