Daily Economic Commentary: New Zealand

[PipDiddy]

Doji alert! The Kiwi ended yesterday's trading almost unchanged against the dollar, forming ANOTHER doji on the daily chart. NZD/USD consolidated below the .8050 minor psychological handle before closing the day just 1 pip below its opening price at .8039.

The lack of economic reports from New Zealand as well as the U.S. kept the pair from making any significant moves on the charts.

Today, our forex calendar is still blank for data for the Kiwi. But don't fret! We do have a couple of top-tier reports for the dollar that could move NZD/USD. Check 'em out in my USD commentary!

[PipDiddy]

With no economic data out from New Zealand, NZD/USD reacted mostly from the central bank drama all over the markets yesterday. After tipping an intraday high at .8076 and intraday low at .80006, the Kiwi traders settled with a 2-pip slip for the day.

The Kiwi got a lot of action around the London session when China stole the BOE’s thunder by announcing not only an interest rate cut, but also an RRR cut. Talk about stressing a point! Comdolls like NZD spiked higher at the thought of more stimulus from one of the biggest commodity consumers, but they were soon dragged down by global economic growth concerns.

The economic boards in New Zealand will be empty again today, but make sure you keep close tabs on any news that might stir the comdoll traders, aight?

[PipDiddy]

Down the Kiwi goes! NZD/USD finally broke down below support at .8000 as risk aversion spooked investors out of higher-yielding assets. By the end of Friday's New York session, the pair settled 55 pips below its opening price at .7982.

Risk aversion kicked in following the disappointing NFP report from the U.S. I think the lack of economic reports from New Zealand left the comdoll vulnerable to market sentiment and might have just cause its demise on the charts.

But don't fret Kiwi bulls! Today, we'll have the NZIER Business Confidence report on tap to sink our teeth into. Due at 10:00 pm GMT, any figure higher than Q2 2012's reading of 13 might send the Kiwi trading higher. Watch out!

[PipDiddy]

Up and down the Kiwi went, but after 24 whole hours, it just ended up where it began! Due to the absence of market moving events, the Kiwi simply ranged the entire day and closed the U.S. trading session just 6 pips lower from its opening price that day.

There were some economic reports, but they didn’t do much to price action. The REINZ House Price Index showed that the selling prices of houses rose 0.3% in June. Meanwhile, the NZIER Business Confidence report fell to -4 from 13 the month before.

No major news reports left on New Zealand’s forex calendar. If you’re thinking of trading the Kiwi, pay special attention to market sentiment. As shift to risk appetite could lead to a very strong bullish rally.

[PipDiddy]

Aaaand the selloff continues! NZD/USD wasn’t immune to risk aversion yesterday, so the pair suffered a 31-pip fall after hitting an intraday high of .7988. What the heck dragged the comdolls yesterday?

Blame China’s data! With no data released from New Zealand, the price action of comdolls were largely influenced by Chinese trade reports. The widening of China’s trade surplus from 18.7 billion CNY to 31.7 billion CNY should’ve been good news, if it weren’t for the disappointing imports numbers.

Imports “only” grew by 6.3% in June, which is a lot lower than the 11% growth that analysts were eyeing. Commodity-producing countries like Australia, Canada, and New Zealand get tons of their moolah from Chinese imports, you know.

The only reports scheduled for today are the business manufacturing index at 10:30 pm GMT and the food price index at 10:45 pm GMT, so you better keep your eyes peeled for other major news that might impact comdoll trading!

[PipDiddy]

Up, up, and away! NZD/USD managed to clock in some gains yesterday as the relatively stable financial markets encouraged traders to pursue higher yields. NZD/USD closed the U.S. trading session at .7965, 21-pip higher from its opening price.

Earlier today, two low impact reports were released from New Zealand. The first one was the Business NZ Manufacturing Index. It printed a reading of 50.2, which was significantly lower than the previous month’s reading of 55.8. The second one was the Food Prices Index. It showed that food prices rose 1.4% in June after rising 0.3% in May.

Since no major news report is scheduled on New Zealand’s economic calendar, the Kiwi could possibly move sideways today. Keep a close eye on the previous day highs and lows, as they could serve as major resistance and support levels.

[PipDiddy]

With no data posted in New Zealand yesterday, Kiwi joined its cousin Aussie on a trip down the charts. NZD/USD dropped to its .7861 intraday low before the Kiwi bulls managed to contain its losses to only 63 pips. Why did Kiwi track the Aussie’s price action?

With Australia’s employment numbers largely missing expectations, who could blame the Kiwi bears from attacking? As I mentioned in my AUD piece, the unemployment rate in Australia went up to 5.2% as 27,000 workers lost their jobs last month. And since Australia is just a stone’s throw away from New Zealand, the neighbor has reason to worry.

No Kiwi economic reports are scheduled again today, so you better keep an eye out for China’s GDP and industrial production data out today. Word on the hood is that the numbers are gonna disappoint, which will most likely drag on commodity-producing economies like New Zealand.

[PipDiddy]

Up, up, and away! The Kiwi soared by pips against the Greenback on Friday, allowing NZD/USD to end the week at . Will it be able to hold on to its gains this week?

The Kiwi was off to a poor start last Friday as it got weighed down by weaker than expected Chinese GDP. Apparently, the Asian giant grew by only 7.6% during the second quarter of 2012, which was less than the estimated 7.7% expansion and the previous quarter's 8.1% growth.

However, NZD/USD was able to bounce back later on during the U.S. session when Uncle Sam reported worse than expected consumer sentiment data. This was enough to spur talks of QE3 again, causing the Greenback to lose ground to its major counterparts.

This week, there aren't much reports on New Zealand's schedule except for the CPI report due 11:45 pm GMT today. The report is expected to show that price levels increased by another 0.5% for the second quarter of this year, but weaker than expected data could for the Kiwi to return some of its recent gains. Stay on your toes!

[PipDiddy]

Wheee! Despite the lack of economic data from New Zealand, NZD/USD was able to extend its gains by another 4 pips to .7976 yesterday. What factors can change the sentiment for the comdoll today?

You’ll have to look at the other major economies for action, homies! Like yesterday, New Zealand won’t be releasing economic reports today. But keep your eyes peeled for the RBA meeting minutes out today at 1:30 am GMT and the BOC interest rate decision coming up at 2:30 pm GMT!

Also, you might want to watch for Big Ben’s testimony tomorrow to see if the Fed hints at QE. If he implies that Uncle Sam is in for more stimulus, then we might see high-yielding currencies post more gains against the Greenback!

[PipDiddy]

The Kiwi ended the day unchanged against the Greenback as NZD/USD simply paced back and forth inside a range yesterday. The pair found resistance at the .8000 major psychological handle while the .7950 mark held as support for the entire day. Is there a catalyst that could trigger a breakout today?

Although New Zealand didn't release any reports yesterday, NZD/USD was able to bust out its sharp moves as volatility spiked during Big Ben's testimony during the U.S. session. Apparently, the central bank head tried to avoid mentioning the dreaded QE3 during his speech but he expressed grave concern about the state of the U.S. economy. For most market participants, that's as good as confirming the chances of further easing later on! Make sure you check out my U.S. commentary for more details on Bernanke's speech though.

In terms of economic data, the coast is clear again for New Zealand today. However, keep in mind that the U.S. is set to release a couple of top-tier reports while Bernanke is set to give another speech during the U.S. session. Better brace yourselves for some fireworks again!