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A combination of net positive New Zealand economic updates and early optimistic headlines on the global trade front had the Kiwi looking strong all week.
New Zealand Headlines and Economic data
Monday:
- Relatively strong start to the week for the Kiwi, which was likely on positive global risk sentiment. Trader’s seemed to be in risk taking mode early on positive U.S.-China trade headlines (China to raise penalties on IP theft in trade war compromise and China and U.S. ‘very close’ to phase one trade deal). But that sentiment never really ran away as negative headlines like China central bank warns high financial risks amid rising economic headwinds and No ‘phase two’ U.S.-China deal on the horizon came online to take a little bit of air out of risk-on sentiment.
Tuesday:
Wednesday:
- RBNZ warns house lending risk may be on the rise
- New Zealand trade deficit at NZ$1.0 billion in October
Thursday:
- Big geopolitical headlines came out during the Asia session (Trump signs Hong Kong bills; Beijing vows retaliation), but the better-than-expected New Zealand ANZ business confidence index (up from -42.4 to -26.4) data was likely what the bulls needed to weather the geopolitical storm.
Friday:
- New Zealand building consent issues down to ‘perfect storm’
- Strong risk-off sentiment to close the week and push the Kiwi lower after China threatens to take ‘strong counter-measures’ against US after Hong Kong bill signings. Unfortunately for Kiwi bears, it wasn’t enough to take the Kiwi out of its winning groove against most of the major currencies.