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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.

Overlay of NZD Pairs: 1-Hour Forex Chart
Overlay of NZD Pairs: 1-Hour Forex Chart
NZD Weekly Performance from MarketMilk
NZD Weekly Performance from MarketMilk

New Zealand Headlines and Economic data

Monday:

New Zealand CPI +0.8% q/q in March, +2.5% y/y

New Zealand extends lockdown by a week, to ease measures on April 27

RBNZ core inflation at 1.7% year-on-year in first quarter, slows from fourth quarter

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.

Tuesday:

RBNZ is proposing the removal of mortgage loan-to-value ratio (LVR) restrictions

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.

Global dairy prices down -4.2% since Apr. 7

Wednesday:

Experts Believe New Zealand Could Succeed in Eliminating COVID-19

Thursday:

The abrupt cutting of travel and the first impacts of the lockdown have seen New Zealand credit card spending slashed

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 ProgramsU.S. House to pass nearly $500 billion more in coronavirus relief)