With no economic data due from New Zealand, Kiwi traders will take their cues from the comdoll’s major counterparts.
Which potential catalysts should you be looking at?
Here’s a list!
Market moving events from other economies
- PMI reports from China, U.S., and the Eurozone would hint at the pace of global economic recovery
- Lower-tier data from Australia (job ads, trade balance), one of New Zealand’s largest trading partners, can influence NZD’s intraday volatility
- NFP-related news in the U.S. can cause intraday spikes for NZD/USD and NZD/JPY
Overall risk sentiment
- Start-of-year optimism could boost high-yielding bets like the Kiwi
- Vaccine-related updates can also support risk-taking in the next few days
- Results of Georgia’s Senate runoff elections can dominate the newswires during the week
- Major dollar pairs will also move around on January 6 when the U.S. Congress is expected to cement Joe Biden’s presidency
Technical snapshot
- RSI considers NZD/USD as “overbought” on the daily time frame
- Kiwi is approaching “oversold” levels against the Aussie
- NZD remains in neutral territory against GBP
- Daily SMAs show the Kiwi’s short and long-term bearish trends against the Aussie
- NZD remains in bullish trends against the USD, CHF, and EUR
- NZD is seeing short-term weaknesses against CAD, JPY, and GBP
- NZD was most volatile against GBP and the safe-havens in December
This post first appeared on babypips.com
