NZD Weekly Review (Feb. 24 – 28)

Fears of the Coronavirus hurting the global economy picked up pace this week, taking down the Kiwi with it to virtually lose to all major currencies this week.

New Zealand Headlines and Economic data

Monday:

• Coronavirus cases outside China surge, prompting traders to start traders the new week in fear mode and really staying that way through Friday.
• Total volume of New Zealand retail sales rose 0.7%, after a 1.7% rise in September; Total value rose by 1.1%
• Travel restrictions for those coming from China extended
• New Zealand Credit card spending ticks higher to 3.7% y/y in Jan. 2020 vs. 3.5% y/y in Dec. 2019.

Tuesday:

• Coronavirus further isolates Iran, strains South Korea, Italy

Wednesday:

• New coronavirus cases outside China exceeded those in China for the first time, WHO says

Thursday:

• Higher exports to China tightens New Zealand’s trade deficit in January
• New Zealand business confidence drops in January on coronavirus fears
• New Zealand prepared for ‘serious impact’ on economy from virus – finance minister
• CDC confirms first US coronavirus case of ‘unknown’ origin; California monitors over 8,000

Friday:

• WHO raises global risk from ‘high’ to ‘very high’
• Mexico among 8 more countries to report first confirmed coronavirus cases