NZD Weekly Forecast – Cues From The Countercurrencies

Partner Center Find a Broker

A dovish RBNZ and fears of a second wave of infections and slower economic growth around the world weighed on the Kiwi last week.

Can the bulls get some of their pips back this week?

Here’s a (short) list of the catalysts that might affect the comdoll in the next few days:

ANZ business confidence (Sept 30, 12:00 am GMT)

ANZ’s September release noted the improvement in forward-looking indicators despite the re-emergence of COVID-19 and new restrictions
NZD didn’t react much to the news, but the report did make it easier for the comdoll to rise when risk sentiment improved in the next trading sessions
Analysts see the index improving further from -41.8 to -40.5
The Reserve Bank of New Zealand (RBNZ) pays attention to business surveys like this so you should too

A lack of top-tier releases from New Zealand means that Kiwi traders will take cues from the comdoll’s major counterparts
The first Presidential debate between Trump and Biden could influence the demand for the dollar
Uncle Sam’s NFP release can also move the major U.S. dollar pairs
China’s PMIs can boost or weigh on the Aussie and take Kiwi’s intraweek trends with it
The last week of Brexit negotiations could inspire choppy trading for the European currencies
COVID-19 updates (new infections, stimulus talks, lockdown prospects) will continue to influence overall risk sentiment and the demand for high-yielding bets like the Kiwi

Kiwi has lost the most value against the dollar, yen, and Loonie in the last 30 days

Stochastic is signaling NZD’s “oversold” conditions against EUR, CAD, JPY, and USD
Kiwi may be “overbought” against the Aussie on the daily time frame

EMAs reflect Kiwi’s short and long-term bearish trends against the euro and yen
NZD/CAD and NZD/USD remain above the 200 EMA even as it sees bearish pressure in the shorter time frames
Watch out for retracement or reversal opportunities on GBP/NZD and NZD/CHF