Daily Economic Commentary: New Zealand

Much like other major currencies, the Kiwi was able to find a lot of buying support when the US printed very disappointing NFP figures. NZDUSD’s gains were minimal though, as it ended the day at .7328, a mere 40-pip gain from its opening price.

No data from New Zealand is scheduled for release today so don’t expect to see much movement on any of the Kiwi pairs.

In any case, looking further ahead the week, the main event for New Zealand will be the release of its retail sales report. Due to come out on Friday, the report is predicted to show that retail sales grew 0.5% in June. If the actual figure comes in below forecast, expect the Kiwi to be a hit amongst traders!

It’s not all zzz’s over in NZ yesterday when the dollar gained 42 pips against the Kiwi despite the lack of data from the country. NZDUSD closed at .7286 after reaching an intraday high of .7346.

The less-than-stellar home loans and job advertisements data from Australia might have affected the Kiwi’s trades, but the closing of short dollar positions ahead of the big FOMC statements might have also boosted the dollar against the Kiwi.

In any case, the Kiwi will have to ride on the risk appetite train again as no reports from New Zealand are scheduled today. Watch the big reports from other regions, though, as it might affect demand for comdolls. Happy trading!

The Kiwi drove down the highway to LoserPipsville yesterday after the traders closed up their dollar shorts ahead of the big FOMC announcement. Good thing NZDUSD managed to limit its losses to 47 pips at .7239 after the dollar dropped on the Fed’s grim economic outlook.

  Will the Kiwi have a chance to make its own waves today? New Zealand’s business manufacturing index is on tap at 10:30 pm GMT, and a better-than-expected figure from June’s 56.2 reading might signal optimism and possibly increased investment and spending.

  Also keep your eyes open for China’s economic figures today, as any sign of a slowdown in the economic growth of one of the world’s biggest source of commodity demand might heavily affect the demand for comdollars like the Kiwi.

Don’t blame the Kiwi for having a big “L” on its forehead. It was just jumping on the bandwagon! Trading yesterday saw the Kiwi join the other major currencies which lost to the USD. NZDUSD used its opening price of .7238 as a diving board and took the plunge to close at .7166.

Together with its comdoll comrades, the Kiwi got the sharp end of the stick as investors were struck by risk aversion. The commodities markets were down as well, adding further burden to the commodity-dependent currencies.

It didn’t help the Kiwi’s cause when the Business NZ PMI report downgraded June’s reading of 56.2 to 49.9 in July. This marks the first time the index has printed below 50 and signaled contraction in the manufacturing industry since September 2009.

Will we see the Kiwi come to life and break away from the pack today? Well if New Zealand’s retail sales figures come in better than expected, we just might! The report is set to come out at 10:45 pm GMT, and is forecasted to publish a 0.5% growth in June after seeing a 0.4% increase in May. Don’t miss it!

Fresh news! Get ‘em while they’re hot! A few hours ago New Zealand released the retail sales figures for June, which revealed a 0.9% rise from May’s 0.4% upsurge. Core retail sales, too, made the Kiwi bulls happy after it increased by 1.5% after declining by 0.2% last May. Hmm, will this help ease the Kiwi’s losses yesterday?

Uncertainty over the US economy’s growth kept the Kiwi ranging against the dollar for most of the day yesterday, and even pushed NZDUSD to an intraday high of 0.7166.

It’s just too bad that the pair closed at 0.7087 after doubts over New Zealand’s retail sales figures and the disappointing data from Australia and the euro zone kept a lid on the Kiwi’s gains.

Will the Kiwi get into more trouble today? No reports will be released from New Zealand, but a lot of big waves are scheduled to hit the markets, starting with the euro zone’s GDP report to the retail sales, CPI, and consumer sentiment data from the US. Good luck in your trades!

Up, up, and….no way? Did the Kiwi change its flight plan last Friday? NZDUSD rose to as high as .7183 after New Zealand’s retail sales went up by 0.9% last June from May’s 0.4% growth, but the pair went back down to a .7054 closing price after risk aversion reigned supreme over markets once again.

The Kiwi might have to go along with the other regions’ tides again as the first New Zealand action will happen on Wednesday at 10:45 pm GMT when the quarterly PPI input and output data are released. Will producer prices top last quarter’s 1.3% input and 1.8% output growth?

The visitor arrivals report for July will also be on tap on Thursday at 10:45 pm GMT. The figure grew by 0.3% last June, but a better-than-expected number is good for the New Zealand economy since about 10% of the population is employed by tourism-related businesses. Good luck in your trades!

Aww yeah, guess who’s back! It ain’t only Slim Shady, but the NZD as well! NZDUSD recovered from an intraday low of .6998 and bounced back to close at .7074. Though it only recorded a 14-pip gain for the day, yesterday’s victory put an end to the USD’s five-day winning streak.

Traders seemed to just shrug off the bad Bank of New Zealand performance of services index yesterday, which measures the level of activity in New Zealand’s service sector. The report printed a huge decline, downgrading June’s reading of 55.1 to just 50.5 in July.

Though this figure is still indicative of an expansion in the services sector, it does raise concern since it follows the worse-than-expected rise in unemployment. Businesses are becoming more and more worried that customers are choosing to keep their money in their pockets. Might it be signaling a future slowdown?

The newswires will be silent today so don’t hold your breath for any reports! Instead, set your eyes on risk sentiment since it’s been a big market-mover lately.

The Kiwi joined it’s com-doll brothers and trampled all over the USD yesterday. NZDUSD rose 60 pips from its opening price, to finish the day at .7118. Is this the beginning of a new bull run for the Kiwi?

No major data coming out until late tonight, when the producer price index report comes out at 10:45 pm GMT. Producer prices are expected to have risen by just 0.6% during the 2nd quarter, down from the 1.3% rise during the 1st quarter.

Hmmmm… if producer prices are barely rising, then chances are than the prices of finished goods have barely risen as well, which would indicate that inflation remains subdued. This could provide evidence for the RBNZ to stick to it’s plan to pause on any rate hikes in the near future.

Yesterday turned out to be a good day for the Kiwi as it managed score some points over the Greenback. NZDUSD opened the Asian trading session at .7124, rose to an intraday high of .7193, before settling at .7153. Although the gains were far from spectacular, it seems that traders are turning from bearish to bullish on the Kiwi, especially since yesterday marked the third consecutive day gain for the Kiwi.

Earlier today, New Zealand printed some better-than-expected inflation figures. The PPI Input, which measures the average change in the prices of goods and raw materials bought by manufacturers, rose at a slightly higher pace than the previous quarter at 1.4%.

No data left on the docket today, so expect the Kiwi to be primarily be driven by news coming out of other major economies, especially the ones from the US.

After seeing yesterday’s price action, you can bet Kiwi bulls weren’t shouting “Ki-wiiiiiiiiiiiiii!” “Ki-boo!!!” is more like it! Throughout most of the day, NZDUSD was on a downhill sprint, falling from its opening price of .7153 and closing at .7075.

Just like the other comdolls, the Kiwi was paralyzed by the bout of risk aversion that struck the markets after the US revealed awful economic data. Unfortunately, it didn’t find any support domestically because no high-impact reports were released yesterday.

It looks like today will be another snoozer in New Zealand since we have no reports on tap. But that doesn’t mean we won’t be seeing any action from NZDUSD! If risk sentiment turns sour again, it could continue its descent!

Hang in there, Kiwi! Though risk sentiment remained negative, the Kiwi was able to hold its head above water last Friday. NZDUSD took an early dip to .7003 but eventually closed practically unchanged from its opening price at .7073.

The economic calendar was virtually blank for the Kiwi last Friday, so it was left at the mercy of risk sentiment. Surprisingly, it fared relatively well against its American counterpart and was able to parry most of the Greenback’s attacks.

Can it continue to hold off the Greenback this week?

The only high impact report on our docket is the RBNZ’s quarterly inflation expectations report due tomorrow at 11:00 am GMT. Results for the first quarter revealed that business managers expect to see a 2.8% annual rise in price over the next two years.

Now, the thing about expectations is that they have a tendency to turn into real inflation. How so? When workers think prices will increase, they push for higher wages. Consequently, businesses tend to raise prices to cover the additional labor costs. So be on the lookout for a Kiwi bull run if the second quarter of 2010 prints higher than the previous quarter.

The Kiwi sprinted to intraday high of 0.7124 yesterday. However, it lost its mojo during the New York session and caught up to it. NZDUSD then erased its gains and finished at .7067 giving the Kiwi only a 17-pip win.

According to reports, the rally in equity markets was said to have given the Kiwi its adrenalin rush as this signaled risk appetite. But risk aversion spurred by concerns on a slowing global economic recovery, weighed down on the currency. Tsk, tsk.

But the Kiwi has another race to run in the charts today. See if the Reserve Bank of New Zealand’s report on business managers’ inflation expectations will be the piptorade to boost the currency at 3:00 am GMT. A reading higher than that of the 2.8% figure for the first quarter is supposed to be bullish for the Kiwi as this would be another reason for the central bank to raise rates. However, the central bank already said last time that they’re done hiking rates.

Hmmm, I wonder how traders will react to the figures. Be on your toes for the report as this may cause some volatility for the Kiwi. May the pips be with ya!

A total lack of originality was what we saw from the Kiwi yesterday. It joined the rest of the currency losers and decided to head south for the day as NZDUSD closed 22 pips below its opening price of .7069.

Aside from risk aversion which crippled the Kiwi’s fellow comdolls, yesterday’s inflation expectations data harmed the New Zealand currency. The quarterly data revealed that business managers are expecting inflation to stay at around 2.6% over the next couple of years, lower than the 2.8% they had expected back in the first quarter of the year.

Hmm… If this is a sign of things to come, the RBNZ may delay rate hikes in the future, which would be terrible for the Kiwi!

No reports from New Zealand on our economic docket today. But be sure to keep an eye on risk sentiment! If investors turn tail and start selling off risk-sensitive assets again, the Kiwi could be in for an extended plunge!

Yesterday was just like a ride at a theme park! Kiwi bears screamed “Weeeeeeeee!” as they took NZDUSD for a 61-pip slide during yesterday’s trading sessions.

Since the New Zealand press was on break with no reports yesterday, the Kiwi was at the mercy of market sentiment, to the delight of Kiwi bears.

Hmm… It looks like risk aversion is here to stay since a couple of reports from the US raised red flags again with worse-than-expected results. Does this mean the Kiwi will be on an extended slide? Bears must be foaming at the mouth just thinking about it!

Don’t expect any reports in your inbox from New Zealand today. For now, be sure to catch the US weekly unemployment claims report at 12:30 pm GMT as it may send waves through NZDUSD. Good luck out there, folks!

The Kiwi was gettin’ some trader lovin’ yesterday. Don’t believe me? Just check out your NZDUSD chart coz like Shakira’s hips, pips don’t lie man. The bulls hustled the pair to its intraday high of 0.7090 after it opened at 0.6986. Boo yeah! However, the bulls seemed to lose their momentum during the New York session as the pair settled at 0.7031 by the end of the day.

I have a good feeling that the lingering effect of risk aversion kept the Kiwi from getting past the 0.7100 handle. And so I think that it would be wise for you to gauge the market’s risk sentiment first before you enter in any Kiwi trade especially since a handful of reports are on tap from the US later. Good luck!

Fly, Kiwi, fly! NZDUSD soared past the .7100 handle when the Greenback sold off last Friday. The pair even gapped higher over the weekend as it opened at .7144. It looks like Kiwi bulls are excited!

Today, New Zealand is set to release the NBNZ business confidence report at 3:00 am GMT. The index of business confidence slid from 40.2 to 27.9 in July, reflecting how businessmen grew less optimistic during the month. Will their moods improve in August? If their outlook gets brighter for this month, the Kiwi could aim for more gains.

Although New Zealand’s schedule for the rest of the week ain’t exactly hustlin’ and bustlin’, it doesn’t mean that the Kiwi is in for a boring one. Oh hell no! Australia, it’s big brother in the Oceanic region, seems to be warming up for a wild ride this week. A bunch of Australian economic reports, namely their GDP, retail sales, building approvals, and trade balance, are on deck and could also impact the Kiwi’s movement. Keep an eye out for those!

After gapping up over the weekend, not only did NZDUSD close the gap, but it headed much lower down the charts. The Kiwi closed 70 pips lower for the day, as it dove down past the .7100 handle to close at .7075.

Early yesterday, the NBNZ business confidence index was released and unfortunately, it seems that our buddies over at Auckland aren’t that confident over the state of the economy. The index printed a reading of 16.4, much lower than July’s figure of 27.9. With business confidence hitting its lowest point since a year ago, the chances of us seeing a rate hike by the RBNZ look a whole lot dimmer now.

No biggies on the economic table today, but that that doesn’t mean you should just chill out. Keep an eye out for risk sentiment, as this seems to be the main theme driving the market right now. Like I always say, sentiment can change on a dime, so always be ready to adapt!

The Kiwi never got the chance to flap its wings on the charts yesterday. It was all downhill for NZDUSD from its opening price of 0.7075 up until it closed at 0.6973. Boo hoo! Against the yen, it fell to its three month low at 58.44 before ending the day with a 24-pip loss at 58.58.

Aside from risk aversion, Canterbury was also one of the reasons why the Kiwi didn’t take flight in yesterday’s trading. Don’t worry I’m not talking to thee about Geoffrey Chaucer. I’m referring to the South Canterbury Finance Ltd. which announced its collapse yesterday. As if the market didn’t have enough headaches from the euro zone’s debt issues! Sheesh! Anyway, the finance company sought a bailout package from the government with its debt amounting to almost 2 billion NZD.

Later today we have the report from the Australia and New Zealand Banking Group (ANZ) on the change in the global price of exported commodities. If we see the figure for August print better than July’s -0.8%, we may just see the Kiwi get a breather. I’m not counting that it will last long though but that’s just me. Good luck with your trades!

The Kiwi staged a comeback on the charts yesterday more awesome than Britney Spears’ attempt to get back into mainstream Hollywood. NZDUSD skyrocketed to its intraday high of 0.7132 after opening the day at its intraday low of 0.6973. The bulls then settled the pair 17 pips lower at 0.7115 to end the day erasing the losses it made last Tuesday. Holla!

Yesterday we saw that commodity prices continued dropped further by  1.4% in August following the 0.8% decline in July. Yikes! Good thing  there was enough bull lovin’ to go around with the improvement in the  market’s appetite for risk. Some also say that the Kiwi was able to pare  its losses because of the strong GDP figures posted by its neighbor, Australia. Wheew!

  We don’t have anything on [tap](http://www.babypips.com/tools/forex-calendar/) for the Kiwi today so you better be on  your toes for changes in the market’s risk sentiment before you enter  in your trades. Good luck and happy trading!

Taking it slow is the way to go! The Kiwi extended its winning streak against its major counterparts yesterday even without any economic reports from New Zealand. NZDUSD crawled 29 pips higher than its open price at .7150.

The board is still empty on the first Friday of the month, but don’t leave your trades hangin’ because the big NFP report from the US at 12:30 pm GMT can spike the currency pairs like crazy! Good luck in your trading!