The New Zealand dollar rode broad risk sentiment, counter currency weakness, and positive pandemic related headlines higher to the top spot on Friday!
New Zealand Headlines and Economic data
Monday:
Total volume of New Zealand retail sales: -14.6% vs. -16% expectations
Ardern Extends Auckland Lockdown to Get Control of Outbreak
Wednesday:
New Zealand recorded a trade surplus of NZD 282M vs. NZD 475M previous
Broad risk sentiment started to pick up towards positive on the session to help lift the Kiwi higher, likely on positive COVID-19 vaccine headlines (Cambridge university aims for autumn trials of coronavirus vaccine after UK funding) and possibly on news that the pandemic pace broad slows worldwide.
Thursday:
The Kiwi slowed pace but maintained its gains during the Thursday session, as traders reacted in favor of risk assets to the announced new approach to inflation by Fed Chair Jerome Powell during the Jackson Hole Economic Symposium, as well as news of a new low cost rapid COVID-19 antigen test from Abbott Labs.
Friday:
New Zealand Consumer confidence was down 4.1pts to 100.2 in August
Thursday’s Fed inspired risk-on vibes overflowed into Friday to lift the Kiwi further, along with the news of Auckland easing its lockdown despite new Covid cases. The bulls may have gotten additional help from the U.S. markets as equities rallied (Dow closes more than 150 points higher to erase its 2020 losses) to help other risk assets close higher into the weekend.
