It was a relatively quiet week for the Kiwi as major news and data from New Zealand was lacking and global catalysts seemed light.
Overall, NZD was a net loser on the week, possibly on broad risk sentiment’s lean towards negative, net negative NZ data, and lingering speculation of negative rates coming from the RBNZ.
Overlay of NZD Pairs: 1-Hour Forex Chart
NZD Weekly Performance from MarketMilk
New Zealand Headlines and Economic data
Monday:
Adrian Orr: Banks must be ‘courageous’ and continue lending to customers in the tough times
Tuesday:
New Zealand Eyes Sweden as Roadmap for Negative Interest Rates
Broad global risk sentiment was mostly negative on the session, likely contributing to the Kiwi’s move lower on Tuesday. The negative vibes was likely a mixed of rising no-deal Brexit fears, weakness in the U.S. equity markets, and disappointing economic updates from Japan and Australia.
Wednesday:
ANZ: NZ activity indicators are at their highest levels since February, but are still well down compared to pre-COVID days
Thursday:
No major catalysts from New Zealand on the session, but we saw a net negative move in the Kiwi against the majors, likely driven by the negative broad risk sentiment environment sparked by the U.S. tech sector sell off during the U.S. trading session.
Friday:
Expansion in New Zealand’s manufacturing sector dropped in August
NZ food prices increased 4.2% in the year ended August
In August 2020, median house prices across New Zealand were up 16.4% y/y
