NZD Weekly Forecast – Trade as A Risk Currency

With no major data scheduled from New Zealand, traders will likely trade the Kiwi as a high-yielding bet in the next few days.

Planning on trading the comdoll?

Here are the points you need to watch out for:

Lower-tier economic releases

Trade balance (Oct 26, 9:45 pm GMT) is expected to show a deficit of 800M NZD in September (from 353M NZD in August) as imports outpace exports
ANZ business confidence (Oct 29, 12:00 am GMT) – a report that the Reserve Bank of New Zealand (RBNZ) will likely pay attention to – could improve from -28.5 to -14.5 in October

NZD has been strengthening across the board lately, which makes it more vulnerable than its other high-yielding peers in case risk sentiment turns sour
Pandemic-related updates (rising number of cases, lockdowns, stimulus, vaccine) will continue to affect global risk-taking
Top-tier reports from other major economies such as Australia’s quarterly inflation; France, Germany, and U.S.’GDPs, and China’s PMI reports can influence the demand for high-yielding currencies
Brexit and stimulus negotiations, in particular, will attract the market players’ focus for the week

Stochastic is flagging Kiwi’s “overbought” conditions against the dollar and Aussie
NZD remains in somewhat neutral territory against JPY and GBP

EMAs reflect NZD’s short and long-term bullish trends against most of its major counterparts
NZD/CHF remains in a bearish trend though it’s seeing short-term demand
Watch out for the Kiwi finally trading above the 200 EMA against the euro