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The Kiwi dollar had trouble finding any love all week, despite  broad global risk sentiment generally leaning positive for most of the week.

So it was likely broad weakness on counter currency flows and continued rate cut speculation that held NZD down, which was hinted by the Reserve Bank of New Zealand later in the week.

Overlay of NZD Pairs: 1-Hour Forex Chart
Overlay of NZD Pairs: 1-Hour Forex Chart
NZD Weekly Performance from MarketMilk
NZD Weekly Performance from MarketMilk

New Zealand Headlines and Economic data

Monday:

ANZ Bank’s commodity price index for last month was fractionally lower at -0.2%

COVID restrictions in Auckland lifted

Tuesday:

Global dairy prices rise for second time in a row in ‘encouraging’ sign for producers, economists

Pressure on the Kiwi dollar picked up quickly as risk aversion sentiment accelerated during the U.S. session after U.S. President Donald Trump halted Covid-19 relief aid talks until after election.

Wednesday:

Broad risk sentiment did a 180 degree turn during the Asia trading session after U.S. President Donald Trump reversed on his call to end work on a stimulus package, calling for Congress to aid the U.S. airline industry.  Unfortunately for Kiwi bulls, this was of no help as trend lower through the whole session.

Thursday:

RBNZ hints at its Funding for Lending Programme having few conditions and not necessarily needing to be implemented with a negative OCR

Kiwi falls as central bank reinforces negative rate expectations

NZ: ANZ’s business outlook continues solid improvement across the board

Friday:

In New Zealand, the Light Traffic Index bounced back 12.3% in September, while the Heavy Traffic Index lifted 4.1% as the Alert Level restrictions eased

The Kiwi was able to recover with other risk assets during the Friday session, supported by traders pricing in hopes of another U.S. stimulus package coming soon.