A very quiet week for the Kiwi with no major catalysts from New Zealand. As usual, global risk sentiment was the main driver with the U.S.-China trade story leading the way to a mixed ending for the New Zealand dollar.
New Zealand Headlines and Economic data
- China December trade beats forecasts: exports up 7.6%, imports up 16.3% – This was likely a contributor to the Kiwi’s early week strength, along with the broad positive risk sentiment vibes from the impending U.S.-China Phase 1 trade deal.
- NZIER’s Quarterly Survey of Business Opinion shows pick-up in business confidence
- Stats NZ reports new dwelling units at a 45-year high
- New Zealand food price index down 0.2% in Dec. after previous 0.7% drop
- The Kiwi rallied broadly starting in the afternoon U.S. trading session, likely on rising positive global risk sentiment after the U.S. and China sign the Phase 1 trade deal.
- There was a broad fall in the Kiwi against the majors during the U.S. trading session, likely due to a strengthening U.S. dollar after positive U.S. economic reports (e.g., US retail sales climb in December, Philly Fed Index Jumps Much More Than Expected In January)