NZD Weekly Forecast – Eyes On Countercurrency Risks

There’s not a lot going on from New Zealand this week, which means Kiwi traders will likely take their cues from countercurrency price action.

Which catalysts should you pay attention to?

I’ve got a list for ya!

Lower-tier domestic releases

China and Australia are two of New Zealand’s biggest trading partners
The Reserve Bank of Australia (RBA) (Dec 1, 3:30 am GMT) is expected to maintain its current policies in December
Australia GDP (Dec 2, 12:30 am GMT) could show a 2.4% growth in Q3 2020 after a 7.0% dip in Q2
China’s official and Caixin PMIs are expected to reflect improvements in the manufacturing and services sectors in November
NFP-related reports could make or break the dollar’s downtrend this week

NZD’s overbought conditions across the board will make it easier for the bears to attack in case there’s risk aversion
Fed Governor Powell will testify before policymakers in DC this week. Watch for the possibility of easier monetary policy or any friction with Treasury that might hint at limited additional stimulus in 2021
Brexit and U.S. election updates will continue to affect overall risk-taking and the demand for high-yielding currencies like the Kiwi
Pandemic-related headlines (vaccine, lockdown, stimulus) can also influence market risk sentiment this week