Mixed results for the Kiwi, making moves off of both positive and negative updates from New Zealand, as well as global risk sentiment shifting very negative heading into the weekend.
New Zealand Headlines and Economic data
The Kiwi kicks off the new week with a bullish start, likely on news that New Zealand claims ‘elimination’ of coronavirus with new cases in single digits
The Kiwi moved broadly lower during Asia session, coinciding with Westpac’s projections that the RBNZ will cut rates to -0.50% later in the year. The move later reversed back to the upside against the majors during the London session, possibly on the New Zealand government’s move to relax social distancing rules.
Kiwi continues its broad move higher during the Wednesday trading session, likely on a combination of positive NZ data (New Zealand exports hit a new high in March 2020, driven by kiwifruit, dairy, and meat) and the broad global risk sentiment sparked by more countries looking at re-opening their economies.
NZD turns lower on the session, likely on rising negative risk sentiment starting in the London session on negative economic updates from Europe (GDP down by 3.8% in the euro area and by 3.5% in the EU), negative outlook from the ECB monetary policy statement, and possibly on some negative commentary from two of the largest companies in the world (Amazon and Apple) taking down U.S. equities.
The New Zealand dollar falls broadly during the Friday session as global risk sentiment continues to be negative from the Thursday session, likely on boosted headlines that the U.S. is looking to take action against China like new tariffs.