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It’s a busy week for Kiwi traders as they will price in major data releases from New Zealand and its major trading counterparts.

Planning on trading the comdoll in the next few days?

Here are potential catalysts you need to know about:

Quarterly jobs numbers (Feb 2, 9:45 pm GMT)

  • A net of 22,000 workers had lost jobs in Q3 2020 – the biggest since March 2009 – as lockdowns continued to affect the labor market
  • The unemployment rate jumped from 4.0% to 5.3%
  • NZD dropped at the news though uncertainty over the U.S. elections (Trump had claimed victory early in the counting process) may have also factored in
  • Markets see the jobless rate inching higher to 5.4% in Q4 2020
  • A net of 0.2% (down from 0.8%) are expected to have lost their jobs over the period

Major Australian and Chinese data releases

Market risk sentiment

  • As a high-yielding currency, traders flock to NZD in times of risk-taking
  • Updates on the Bank of England (BOE) and RBA’s economic outlook can affect overall risk appetite
  • Vaccine-related progress in the Eurozone, the U.K., and the U.S. can also provide additional boosts to the comdolls
  • Corrections in the equities markets hasn’t hit high-yielding currencies yet, but watch out for further selling and its impact on risk-taking in the forex scene

Technical snapshot

  • Bollinger Bands peg the Kiwi as “overbought” against the Aussie on the daily time frame
  • NZD is approaching overbought status against the yen but is heading towards the oversold zone against the pound
NZD Forex Pairs Bollinger Bands from MarketMilk
NZD Forex Pairs Bollinger Bands from MarketMilk
  • SMAs show NZD’s short and long-term bullish trends against AUD, CAD, CHF, and JPY
  • NZD/USD may soon see retracement or reversal opportunities
  • NZD is still above the 200 SMA even as it dips below the shorter-term moving averages
NZD Forex Pairs SMAs from MarketMilk
NZD Forex Pairs SMAs from MarketMilk
  • NZD saw the most volatility against the safe-havens (USD, CHF, JPY, and EUR) in the last seven days
NZD Forex Pairs Volatility from MarketMilk
NZD Forex Pairs Volatility from MarketMilk