It was a mixed but net positive week for the Kiwi dollar. And with few updates from New Zealand, it’s likely this week’s generally positive lean in risk sentiment and counter currency flows were the main drivers for the Kiwi’s net outperformance.
New Zealand Headlines and Economic data
Monday:
No updates from New Zealand on Monday, and with broad risk sentiment rebounding after last week’s sell off it’s tough to say what was the main driver for the Kiwi’s underperformance on both Monday and Tuesday.
Wednesday:
NZ’s small dwellings approvals hit highest level since early 1990s
NZ business outlook lifted a little from early-September preliminary reads
We saw a small uniform move lower in the Kiwi during the Asia session after the positive economic reads from New Zealand. This was likely a reaction to broad risk sentiment moving negative after Tuesday night’s messy U.S. Presidential debate.
Sentiment later reversed towards positive to likely lift the Kiwi back up through Wednesday and Thursday on rising hopes of new U.S. stimulus package coming soon.
Friday:
New Zealand Consumer confidence was unchanged at 100.0 in September.
The Kiwi moved broadly lower during the Asia session as traders ran to safety after U.S. President Trump’s announcement on Twitter that he and the First Lady contracted COVID-19, increasing the uncertainty of the upcoming U.S. Presidential election.
