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Along with the negative economic updates from New Zealand, it’s likely that the Kiwi’s poor performance was once again heavily influenced by risk sentiment. The ongoing pandemic and the economically damaging lockdown measures had traders leaning risk-off once again to put the Kiwi as a big net loser at the close of Friday.


New Zealand Headlines and Economic data
Monday:
Tuesday:
- New Zealand ANZ business confidence index down from -19.4 to -63.5
- In the year ended February 2020, the actual number of new dwellings consented was 37,882, up 11 percent from the February 2019 year.
- The Kiwi was moving to the upside through the Tuesday Asian session, likely a reaction to the better-than-expected Chinese PMI updates (China says manufacturing activity expanded in March, defying expectations of a contraction) and bullish Aussie reaction. The move was eventually reversed by the U.S. trading session, likely sparked by the rising uncertainty how bad the COVID-19 pandemic will be to send risk assets lower.
Wednesday:
- Treasury says unemployment could hit ‘double digits’ as Covid-19 hammers NZ
- Risk sentiment continues negative on the session to add pressure on the Kiwi, likely sparked by U.S. President Trump’s change of sentiment on the coronavirus, warning of ‘very painful two weeks’ ahead.
Thursday:
Friday:
- RBNZ steps up pace of bond purchases amid flood of issuance
-
NZ Govt announces new legislation to help companies during Covid-19 lockdown
- Give companies the option to put existing debts into hibernation until business returns to normal
- Allow the use of electronic signatures
- Allow deadline extensions for company meetings and annual returns
- Give directors of companies facing significant liquidity problems a safe harbour from insolvency duties
- The Kiwi saw one last push lower against the majors during the Friday session, likely on another round net negative risk sentiment, possibly on more doubts of the Saudi-Russia oil deal, the economic damage being done from the global social lockdown, and/or continued coronavirus fears as cases and deaths continue to rise at a frightening pace (Coronavirus cases top 1 million globally).