The Takeaway: New Zealand Performance Services index declined marginally in March-> Traders look for China's 1Q GDP -> NZD/USD was little changed
The New Zealand Performance Services Index declined marginally by 0.1 point to 55.4 in March, versus 55.5 in February. The figure marked the seventh consecutive month of expansion in the service sector. The recent economic releases from New Zealand depicted a mixed picture for the domestic market. However, it did not have any effects on the Kiwi as it is propelled by risk appetite trends.
The NZD/USD opened the trading week lower as the disappointing US data on Friday weighted on risk appetite for high yielding assets over the weekend. However, the overall risk-on sentiment bolstered by BoJ’s expanded asset purchase program provided support for the currency pair. The release had no effect on the NZD/USD as traders are eyeing on the Chinese first quarter gross domestic productivity that is due for release in three hours. At the time of writing, the NZD/USD is trading at 0.85733.
NZD/USD 1 Minute Chart
Chart Created by Robin Leung using Marketscope 2.0
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