The New Zealand dollar beats out most of the majors in a subdued week of trading. There were no major catalysts other than Brexit developments, so it’s likely NZD benefitted from counter currency weakness and a slight lean towards positive in risk sentiment to close Friday in the green, with exception to the Australian dollar.
New Zealand Headlines and Economic data
Wednesday:
New Zealand manufacturing sales volume climbs 3.1% in Q3
– volume of total manufacturing sales rose 3.1 percent
– value of total manufacturing sales fell 1.3 percent
– volume of total manufacturing finished goods stocks fell 1.2 percent
– total wholesale trade sales value rose 5.8 percent ($1.6 billion)
– total value of wholesale trade stocks fell 6.3 percent ($829 million).
Volatility finally picked up in the Kiwi during the Wednesday session, rallying against the majors on positive risk sentiment (likely fueled by Brexit optimism from Tuesday), but quickly reversed as commentary from officials raised speculation of a no-deal Brexit becoming a likely outcome (UK PM Johnson warns EU over Brexit trade talks: back down or it’s no-deal)
Thursday:
New Zealand credit spending was down -6.3% y/y in October 2020; +1.5% m/m
Kiwi bulls take charge on Thursday, likely driven by positive risk sentiment once again. And like most of the week, this was driven by Brexit developments, this time leaning positive after it was announced that Brexit negotiations were extended until Sunday.
