Positive top tier New Zealand data lifts the Kiwi to a net positive gain on the week, despite the negative global sentiment taking down the risk-on major currencies.
New Zealand Headlines and Economic data
- The BNZ-BusinessNZ performance of services index fell to a seasonally adjusted 51.9 in December
- Global Dairy Prices are up +1.7% since Jan. 7
- Despite the positive updates in dairy prices and expansionary (but slower) business services conditions in New Zealand, the broad move lower in the New Zealand dollar against the majors during the early Asia session was likely on news of the Chinese Coronavirus spreading.
- The Kiwi drops against a few of the major during the U.S. trading session, possibly on more rising fears after news of the rising number of infections/deaths from the Coronavirus.
- New Zealand inflation 0.5% in Q4, higher than expectations – the Kiwi popped higher on the better-than-expected inflation update, likely on the argument that the improving inflation conditions reduces the odds of a more rate cuts from the RBNZ.
- Higher airfares and rents boost New Zealand’s inflation
- New Zealand Credit card spending rose 3.4% y/y in Dec vs. 4.4% y/y in Nov.
- The Kiwi gives back some of the gains from the inflation event after news from the CDC confirming a second US case of coronavirus sparked further global risk-off sentiment.