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The New Zealand dollar nearly takes the top spot this week as traders priced in positive comments from New Zealand government officials, better-than-expected NZ data, and counter currency weakness.

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 faces another week of Covid restrictions as Ardern defends cautious approach

New Zealand services PMI for August 46.9

Tuesday:

New Zealand Consumer confidence hits lowest level since 2008

Broad move higher in the Kiwi during the Asia session, likely fueled by the positive updates from China (China’s industrial engine gathers speed, consumers open wallets in boost to recovery) setting off a risk-on lean in the markets for the session.

Wednesday:

Fifth time’s the charm – Global Dairy prices lift at auction – prices rose 3.6% since Sept. 1st, the first rise since July 7.

NZ records current account surplus as imports fall

NZ Treasury: Covid-19 impact on economy not as bad as feared but ‘profound uncertainty’ ahead

Thursday:

New Zealand economy in deepest recession as second-quarter GDP shrinks – Gross domestic product contracted a seasonally adjusted 12.2% quarter-on-quarter, better than an expected fall of 14% by the Reserve Bank of New Zealand. The Kiwi fell both before and after the event as traders expected the sharpest quarterly contraction on record.

RBNZ: banks need bigger capital buffers

Friday:

The Kiwi saw support during the Asia session thanks to positive comments from New Zealand’s finance minister, expecting  astrong economic rebound from technical recession. The tone changed during the U.S. session as broad risk sentiment shifted negative thanks to a combination of scenarios ranging from a low expectancy of a new stimulus package from the U.S. government, the possibility of the U.K. locking down once again, and as the U.S. tech sector continues to fall.