Positive week for the Kiwi dollar in reaction to more global central bank easing and positive developments on the geopolitical / economic fronts, including New Zealand’s housing and business sector.
New Zealand Headlines and Economic data
- Kiwi pairs strongly rallied during the afternoon U.S. trading session, correlating with the news that the Federal Reserve cut interest rates another quarter point and lowered expectations of an interest rate hike any time soon. This had a broadly positive effect on global risk sentiment and closed the interest rate differential gap between the U.S. and New Zealand assets.
- In September 2019, the seasonally adjusted number of new NZ dwellings consented rose 7.2%, after rising 0.9% in August 2019.
- New Zealand business confidence jumped 12 points to -42% in the October ANZ Business Outlook
- Global risk aversion sentiment rose before the U.S. trading session to stifle the Kiwi, correlating with reports that China believes that a long-term trade deal with Trump is in doubt.
- After a London session dip, Kiwi pairs rallied during the U.S. session, likely on a combination of a positive Chinese manufacturing PMI update, positive U.S-China trade negotiation updates, and a generally positive update from U.S. employment data.