Mixed performance for the Kiwi this week, spending a lot of time in the red against the majors on early negative risk sentiment and disappointing data from New Zealand.
But we did see bounce back on Thursday as risk sentiment flipped positive with oil’s comeback to lead the Kiwi as a net winner into the weekend.
New Zealand Headlines and Economic data
Global risk aversion sentiment dominated the markets, sparked by the historic crash in oil, which likely contributed to the Kiwi’s fall on Monday & Tuesday against the majors.
RBNZ policymakers are considering directly monetizing government debt – This was a surprise comment from RBNZ Governor Orr that accelerated the Kiwi’s fall during the Asia trading session.
Risk sentiment likely played a role in the Kiwi’s positive turn during the Thursday trading session, sparked by oil’s bounced higher from record low levels and more stimulus coming in the U.S. (Fed Focuses on Lending Programs, U.S. House to pass nearly $500 billion more in coronavirus relief)