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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.

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

Tuesday:

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.”

Wednesday:

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.”

Thursday:

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.”

Friday:

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.