Daily Economic Commentary: New Zealand

[PipDiddy]

Unlike its comdoll buddies, the Kiwi was able to sneak a few pips against the dollar. And that’s after a weak trade balance report was released! NZD/USD hit an intraday bottom at .8184 before it closed 9 pips higher than its open price.

Early yesterday we saw New Zealand’s trade balance data disappoint expectations. The report showed a trade deficit of 789 million NZD, which is worse than the expected 617 million NZD deficit. Apparently, overseas demand for dairy and meat was weaker than what market players had priced in.

But lo and behold! The Kiwi actually posted gains against the Greenback! NZD/USD encountered a strong support just below the .8200 major psychological handle and ended the day just above the .8250 area.

Will New Zealand’s reports weigh on Kiwi today? A couple of minutes earlier we saw the NBNZ business confidence print an index reading of 17.0, a bit lower than the 19.5 reading for August. New Zealand is also set to release its building consents numbers at 10:45 pm GMT, so you might want to wait for it in case it becomes a game-changer for NZD/USD’s price action.

Good luck trading today, fellas!

[PipDiddy]

Thanks to the return of risk appetite, the Kiwi had quite a good run yesterday as NZD/USD rallied beyond the .8300 handle and closed at .8317. The question is, will it be able to hold on to its gains and go for more?

It's surprising that the Kiwi still managed to end the day in the green against the Greenback since it released a couple of weak figures yesterday. The NBNZ business confidence figure showed a slight downturn in sentiment as the figure fell from 19.5 to 17 in September. Meanwhile, building consents also showed a slowdown as the figure dropped from 2.2% to 1.9% in August.

Luckily for the Kiwi, risk sentiment was king yesterday as market participants bought up higher-yielding currencies after Spain unveiled its reforms and budget plans.

There are no reports set for release from New Zealand today, which means that the Kiwi could trade on risk sentiment again. Unless we hear of negative updates from the euro zone or see another round of weak figures from the U.S., NZD/USD might be able to stay afloat until the end of the week.

[PipDiddy]

Like its comdoll buddies, the Kiwi didn’t stand a chance against the Greenback last Friday when investors were bent on dragging the high-yielding currencies lower across the board. NZD/USD tipped at an intraday high of .8357 before risk aversion took over and dragged the pair to its .8288 closing price.

No reports were released from Australia’s closest trading partner last Friday, so the Kiwi traders were focused on speculations of a Spanish bailout and overall risk aversion in the markets.

Only the ANZ commodity price index tomorrow at 12:00 am GMT is scheduled for release in New Zealand throughout the week, so prepare for more risk sentiment action from the Kiwi. You might want to stay tuned to our comdoll trader Happy Pip’s Twitter account for any updates on the comdolls.

Good luck and good trading this week, fellas!

[PipDiddy]

That .8300 handle sure is stubborn, isn't it? NZD/USD just can't seem to make a break above that major psychological level as it spiked to a high of .8324 but eventually closed at .8281. Will it make another attempt today and will it be a successful one?

New Zealand didn't release any economic data yesterday, leaving the Kiwi at the mercy of risk sentiment. Unfortunately for the commodity currency, risk wasn't on its side yesterday as China just reported another contraction in its manufacturing sector.

Today, New Zealand's schedule is empty once again but the Kiwi might be able to take its cue from the RBA monetary policy announcement. Although this release has a stronger impact on the Aussie, the Kiwi tends to get dragged along because New Zealand has strong economic ties with Australia. Stay on your toes for the actual announcement and the accompanying statement around 2:30 am GMT.

[PipDiddy]

And the Kiwi sell-off continues! NZD/USD gave the .8300 handle another go yesterday but was once again unable to break through the critical resistance level. After struggling to sustain demand above this handle, it slipped back down to record a 17-pip loss at .8265.

With no major reports from New Zealand to dictate price action, the Kiwi was at the mercy of market sentiment. Like most high-yielding currencies, it started the day beefing up against the Greenback, but eventually gave up all of its gains later in the New York session.

For those of you looking forward to trading some reports from New Zealand... sorry guys, nothing coming out today! That being said, if you're planning on trading the NZD/USD, I suggest you shift your focus on the U.S., which is due to publish a couple of red flags later on. Check out my USD commentary to learn more about it!

[PipDiddy]

The Kiwi was off to a weak start as it plummeted during the Asian and London sessions, but managed to rebound towards the end of the U.S. session. Despite that, NZD/USD still ended the day in the red as it closed at .8183.

New Zealand didn't release any economic reports yesterday but Australia, its Oceanic neighbor, did. Unfortunately, Australia's trade balance missed expectations and triggered a sharp selloff for both the Aussie and Kiwi. It didn't help NZD/USD that the U.S. printed stronger than expected ADP non-farm employment data, which boosted demand for the Greenback.

There are no economic reports set for release from New Zealand, which means that the Kiwi could be heavily affected by Australian and U.S. reports again. Bear in mind that Australia will release its building approvals and retail sales data during the Asian session while the U.S. is set to release the FOMC meeting minutes later on. Keep an eye out for those events!

[PipDiddy]

Fly Kiwi, fly! That's exactly what the comdoll did in yesterday's trading as risk appetite dominated market sentiment. NZD/USD opened at .8183 and rallied to close at .8218.

Despite the lack of economic reports from New Zealand, good vibes were aplenty in the market thanks to ECB President Draghi's remarks. The central bank head honcho assured investors that officials are working hard to keep Spain and Portugal on the right track and that the ECB is committed to ensure the euro's survival.

The Kiwi would most probably remain vulnerable to market sentiment in yesterday's trading given that our forex calendar is still blank for reports from the land of the Maori. Be sure you keep tabs on the much-awaited NFP report from the U.S., okay? The employment report has been known to cause volatility on the charts and there's no reason for today's release to have a different effect.

[PipDiddy]

That’s what you call a wipeout! Just like its comdoll sibling the Aussie, the Kiwi sank on Friday, as NZD/USD fell 47 pips to close at .8171. Can the Kiwi bulls bounce back?

It appears that the positive reaction to the U.S. NFP report helped the Greenback lord its dominance on the markets, leaving higher yielding currencies and the comdolls in its tracks. Hit up my U.S. commentary for the 411 on the NFP report!

Later today at 9:00 pm GMT, the NZIER business confidence survey results will be made available. The index has actually been decreasing the past 5 months, so there’s a chance we’ll see today’s figure come in below last month’s score of -4. If it does come in much lower, it could trigger another Kiwi sell off, so watch out!

[PipDiddy]

Though there wasn't much action on NZD/USD yesterday, the Kiwi did manage to squeak by with a 22-pip win. The pair was a ghost town during the Tokyo and London sessions, but action picked up as the Kiwi staged a rally in the New York session to take the pair to .8193.

Yesterday's REINZ HPI report didn't seem the catch the markets interest. It printed a 0.6% increase in house prices, which is less than half the growth we saw the previous month.

Likewise, the NZIER business confidence survey hasn't really boosted demand for the Kiwi. It printed a reading of 8, up from -4. But overall, it seems that business confidence is still being bogged down by the tough economic environment.

No more reports from New Zealand today. In the meantime, I suggest y'all keep an eye on risk sentiment. Remember, the Kiwi loves to rally when risk appetite is strong!

[PipDiddy]

Just like its comdoll siblings, the Kiwi traded to the beat of risk sentiment, which unfortunately for the bulls, had a slightly bearish tone. NZD/USD eventually closed the day at .8167, down 26 pips from its opening price.

Once again, we’ve got no hard data on tap today from New Zealand, so we can probably expect NZD/USD price action to follow risk sentiment. Take note that recently, it seems that risk aversion is slowly taking control over the markets. If we do see poor equity earnings releases during the New York session, it could trigger a sell-off, which could be bearish for the Kiwi.