Choppy week for the Kiwi dollar, arguably ending net lower after traders were unable to hold onto gains sparked by better-than-expected New Zealand jobs data.
New Zealand Headlines and Economic data
Fonterra lifts forecast NZ farmgate price as Global Dairy Auction records another rise – “Global Dairy Trade prices have rebounded spectacularly in the past few months, recording a sixth consecutive rise…. The GDT index was up 1.8 per cent, led by a 10.7pc increase in the buttermilk powder price and a 6.2pc increase in the butter price.”
New Zealand jobs surprise rules out rate cuts, tightening could be back sooner – this was highly likely the catalyst for the Kiwi’s spike higher early in the Asia trading session.
New Zealand approves COVID-19 vaccine, warns against nationalism – “Prime Minister Jacinda Ardern said she still expected supplies of the Pfizer-BioNTech product to arrive in the country by end-March, but expressed concern at any attempt to limit exports.”
New Zealand preliminary business confidence index up from 9.4 to 11.8 – “Inflation expectations lifted from 1.65% to 1.78%, another step closer to the 2% RBNZ CPI target midpoint.”
No major data or catalysts from New Zealand on Friday, but we did see a broad move higher in the Kiwi, likely due to positive global risk sentiment. Traders were bullish on risk on Friday after the U.S. Senate voted to progress Biden’s $1.9 trillion COVID-19 stimulus plan.