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No major catalysts from New Zealand this week, so it looks like the Kiwi’s mixed, net negative performance was driven mainly by global risk sentiment moves and counter currency flows.

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:

The Business NZ Performance of Services Index in New Zealand rose to 54.1 in June from a revised 37.5 in the prior month

Tuesday:

New Zealand credit card spending down 9.2% after earlier 20.6% drop

Global Dairy Prices Bounce Back From Coronavirus Slump

We saw positive global risk-on vibes on the session that likely helped support the Kiwi higher against most of the majors. The risk taking vibes was likely a combination of the good news that the EU finally got a deal done on the recovery fund and positive expectations of another round of U.S. stimulus soon.

Wednesday:

With no apparent catalyst from New Zealand, the turn in the Kiwi lower was likely on the negative shift in global risk sentiment. Growing U.S.-China tensions (U.S. charges two Chinese nationals in coronavirus vaccine hacking schemeU.S. gives China 72 hours to shut Houston consulate) was the likely catalyst that had traders looking for safety during the U.S. trading session.

Thursday:

Global risk sentiment moved towards negative once again during the Thursday U.S. trading session, this time on signs of a weakening rebound of the U.S. jobs sectorU.S.-China tensions were also on the rise during the session to push risk sentiment negative, along with rising COVID-19 cases worries and U.S. big tech sector weakness to add pressure to the Kiwi.

Friday:

NZ annual trade deficit smallest in six years

Negative global risk sentiment from Thursday flowed into Friday as U.S.-China tensions were once again a focus, this time after China ordered the closure of a U.S. consulate in Chengdu and US Secretary of State Mike Pompeo urged China’s citizens to help ‘change the behaviour’ of their government.  The Kiwi was net lower on the session, but price action against the majors seemed mixed as it closed higher against the Loonie and Aussie, while falling against the rest of the majors.