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Not a lot going on in New Zealand’s data calendar this week, which means risk sentiment will likely factor a lot in the Kiwi’s intraweek trends.

Which potential catalysts should you watch out for?

I’ve got a list:

Trade data (Jan 27, 9:45 pm GMT)

  • New Zealand printed a trade surplus in November after three consecutive months of deficit
  • Exports dipped by 0.2% but imports also fell by a whopping 17% for the month
  • Analysts see the surplus tightening from 252M NZD to 150M NZD in December

Market risk sentiment

  • Eyes will still be on the Biden administration and its ability to pass stimulus bills that the POTUS has promised. Hints of significant opposition can weigh on the demand for high-yielding bets like NZD
  • New COVID-19 variants and their impact on lockdown prospects will continue to factor in the market’s risk appetite
  • Closely watched events like the FOMC statement, U.S. GDP report, and Australia’s inflation readings can affect NZD’s intraday trends

Technical snapshot

  • Daily EMAs show that the Kiwi’s short and long-term bullish trends against EUR, CAD, CHF, JPY, and USD remain intact
  • NZD is still bearish against AUD though we’re seeing short-term demand on the daily time frame
NZD Forex Pairs EMAs from MarketMilk
NZD Forex Pairs EMAs from MarketMilk
  • NZD saw the most volatility against the European currencies and the dollar 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 Jan. 18 – 22!