The Kiwi ends the week as a net winner despite a round of negative sentiment in the global trade story, suggesting counter currency flows/weakness were the biggest influence this week.
New Zealand Headlines and Economic data
- The BusinessNZ Performance of Services Index in New Zealand rose to 55.4 in October 2019 from an upwardly revised 54.5 in the previous month
- Low demand global demand for logs weighs on NZ’s producer prices in September. It’s also likely that the broad risk-off sentiment on the pessimistic mood from Beijing on U.S.-China trade negotiations brought some selling pressure to the Kiwi during the early Asia session.
- Global dairy prices rise for fifth time in a row
- New Zealand’s credit card spending eases from 4.7% to 2.5% from a year ago in October
- Global risk sentiment turned towards the positive to likely support the Kiwi on the session, possibly on a combination of China’s top negotiator sounded ‘cautiously optimistic’ about reaching trade deal and China inviting U.S. trade negotiators for new round of talks.
- Risk sentiment shifted positive during the U.S. trading session, likely supporting the Kiwi in the process, after a combination of better-than-expected U.S. business sentiment (U.S. Composite PMI Business activity growth quickens in November) and consumer sentiment.