Not a lot going on in New Zealand this week, which means that Kiwi trading will likely take cues from risk sentiment.
Can this week’s potential catalysts inspire one-directional moves for the comdoll?
Check out this list:
Business surveys
- The Reserve Bank of New Zealand (RBNZ) often looks to business surveys for cues on policy direction
- Quarterly inflation expectations (Feb 9, 2:00 am GMT) could speed up from 1.6% to 1.9% in Q1 2021
- BusinessNZ manufacturing PMI (Feb 11, 9:30 pm GMT) is seen at 50.2 after a 48.7 reading in December
Market risk sentiment
- With only a few top-tier reports scheduled even from other major economies, COVID-19 cases, vaccine distribution, and stimulus prospects could continue to drive the appetite for high-yielding bets like NZD
- U.S. Treasury yields and the demand for USD can also influence the trends of NZD/USD and the rest of major NZD pairs
- Better-than-expected jobs data from last week and expectations of a less dovish RBNZ statement later this month make NZD a more attractive bet than its fellow comdolls
Technical snapshot
- Stochastic considers the Kiwi “overbought” against the yen, franc, euro, and the Loonie
- Kiwi is also approaching overbought levels against Aussie
- GBP/NZD remains in neutral territory
- Daily EMAs reflect the Kiwi’s short and long-term bullish trends against most of its major counterparts
- NZD could be seeing short-term bearish pressure against AUD
- NZD is seeing short-term bearish trends against GBP even as it remains above the 200 EMA
- NZD was most volatile against the safe-havens and the pound in the last seven days
