Daily Economic Commentary: New Zealand

[PipDiddy]

The Kiwi joined its comdoll buds in bullying the dollar last Friday as it touched its three-week high at 0.7218 before closing at 0.7209 with a 61-pip gain. Boo yeah!

Looking ahead, it seems like we’re in for a Kiwi snoozefest as the only report we have on tap for the currency is the credit card transactions report on Wednesday at 10:45 pm GMT. The Kiwi bulls will be looking for an improvement from the 0.1% decline it posted in July in order for them to hustle.

You may want to tune in to Australia’s economic reports as the Kiwi usually follows the Aussie’s tracks. From what I’ve heard the central bank is scheduled to announce its interest rate decision tomorrow at 4:30 am GMT. Be on your toes for that the central bank’s statement may just reel you in some Kiwi pips! Good luck!

[PipDiddy]

The Kiwi showed off its swagger on the charts yesterday as it skyrocketed to its four-week high at 0.7257 against the dollar. Boo yeah! NZDUSD closed slightly lower at 0.7232 but it was all good for the commodity currency as it ended the day with a 46-pip win.

As I mentioned yesterday, we’re in for a Kiwi snoozefest this week. So you better gauge the market’s risk sentiment as this could be the primary dictator of the currency’s price action. It would also help if you take note of the happenings in Australia as the Kiwi usually follows Aussie’s tracks on the charts. Good luck and happy trading!

[PipDiddy]

[Ki]weeeeee!!! The Kiwi was swept by the pip currents once again when the lack of data from New Zealand exposed the currency to risk sentiment. A fresh wave of risk aversion in markets pushed EURNZD 179 pips lower than its open price at 1.7624, and slipped NZDUSD to its 0.7200 closing price.

We’ll see no reports from New Zealand today, so keep an eye out for any announcement or report that could shift risk appetite!

[PipDiddy]

After it looked like the Kiwi was gonna drown in the Tasman sea, it held on and benefited from a wave of risk appetite. NZDUSD hit a low of .7160 before bouncing back up to close at .7220, which equaled a 20 pip gain for the day.

Once again, nothing on the economic calendar coming out from New Zealand. Watch out though, for high impact reports coming out from other countries that could alter risk sentiment. As I always say, risk sentiment can change on a dime, so be careful out there!

[PipDiddy]

Choo! Choo! The Kiwi hitched on the risk appetite train yesterday as the markets played the comdolls into its rallies. NZDUSD capped its 32-pip gain at .7252 after tapping an intraday high of .7288.

It seemed that the Kiwi bulls were willing to overlook the disappointing overseas trade index report in favor of the positive sentiments on the comdolls. The data only grew by 2.1% after hitting a 6.1% growth for the first quarter. Oh well, a gain is a gain, right?

The Kiwi might have to stay in the shadows for another day as no economic report is scheduled from New Zealand, but watch your trades closely for any changes in risk sentiment!

[PipDiddy]

Weeee!!! The Kiwi enjoyed the risk appetite express last Friday when an improvement in risk sentiment boosted the commodity-related currencies. NSDUSD capped the week at 0.7280 after dropping to an intraday low of 0.7228.

The Kiwi will have a shot at its own spotlight this week when New Zealand’s retail sales for July is released today at 10:45 pm GMT. The number is expected to cool and show flat growth after rising by 0.9% last June, but a better-than-expected result might wake up the bulls for Wednesday’s red flags.

So what’s up with Wednesday? An interest rate decision, that’s what! The Reserve Bank of New Zealand is set to announce their interest rates on Wednesday at 9:00 pm GMT. Many expect the central bank to do an RBA number and keep their interest rates at its current 3.00% form, but an upside surprise just might push the currency to chart skies.

The Westpac consumer sentiment data on Friday will end the week for New Zealand, and a figure higher than the first quarter’s 119.3 figure will signal that more Maoris are putting on their happy faces.

[PipDiddy]

Score another one for Kiwi! Despite releasing a disappointing food price report yesterday, the Kiwi managed to rally against the dollar on a surge of risk appetite in markets. NZDUSD ended the day 26 above its open price at .7344.

But what’s this big fall I see? A few TV shows ago, the retail sales report clocked in with a 0.4% decrease from last June’s 1.0% gain. Core retail sales also painted a gloomy picture when it dropped by 0.1% from its 1.5% rise. This alarmed the Kiwi bulls enough for them to dump the Kiwi like there’s no tomorrow. NZDUSD dropped by 50 pips!

New Zealand will take a breather from economic reports today, but prepare for the big interest rate decision tomorrow at 9:00 pm GMT

[PipDiddy]

I thought I was gonna be sick with the way NZDUSD zigzagged through the charts yesterday! The pair started the day of with a sharp drop during the Tokyo session, reaching an intraday low of .7269. But once the London session began, it switched gears and headed straight for its intraday high of .7395. In the end, NZDUSD settled just 19 pips higher for the day at .7363.

As I mentioned yesterday, New Zealand’s retail sales took an unexpected plunge and fell 0.4% in July. After seeing a 1.0% increase in June, it’s no wonder investors were so quick to sell the Kiwi early in the day.

Don’t feel bad for the Kiwi though, it eventually got its rally later in the day when the comdolls decided to climb up the charts during the London session. Greenback weakness across the charts caused the comdolls to make bullish moves.

Boy, are you in for a treat today! The RBNZ is scheduled to make its big interest rate announcement at 9:00 pm GMT. Most analysts think rates will stay at 3.00%. In any case, we might see big moves from NZDUSD today, especially if the RBNZ decides to let out a few dovish words in light of weak consumer spending.

[PipDiddy]

D’oh! The Kiwi missed most of the pip action yesterday as New Zealand’s unfavorable economic data held back the Kiwi bulls. NZDJPY may have climbed by 144 pips at 62.62, but NZDUSD fell by 47 pips to a closing price of .7316.

No reports were released from the land of the Maoris yesterday, but concerns on the New Zealand economy made the traders think that the Reserve Bank of New Zealand (RBNZ) isn’t gonna raise interest rates.

And boy were they right! After raising interest rates twice in a row, the RBNZ decided to maintain their cash rate at 3.00% this month. Guess they had to keep at least one thing steady, huh? Apparently, the worst earthquake in 80 years rocked the Canterbury region last September 4, and the RBNZ members think that the impact can pull the economic growth down by as much as 0.8%. Wow, those broken power and water lines are expensive!

The RBNZ also said that while domestic and international economies are still growing, the growth rate isn’t as stellar as they first estimated. Hmm, that sounds a lot like the Reserve Bank of Australia’s latest mantra! Is keeping the rates steady the new “in” thing for the central banks today?

No other reports are scheduled to hit the charts today, but keep close tabs on any information that might influence comdoll trading!

[PipDiddy]

“Baby are you down down down down down” It seems that the Kiwi can’t get enough of Jay Sean’s tune as it went on its merry way down the charts yesterday. NZDUSD dropped by 66 pips after the Reserve Bank of New Zealand decided to keep its interest rates at 3.00%.

The Westpac consumer sentiment report also weighed on the Kiwi when the index printed at 114.1 from its 119.3 figure in the first quarter. Uh-oh, it looks like it might be a while before the Kiwi bulls put on their happy faces!

No report is scheduled for release today, but keep your eyes open for any data that might affect comdoll trading!