News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.13% 🇨🇦CAD: -0.01% 🇪🇺EUR: -0.05% 🇦🇺AUD: -0.08% 🇨🇭CHF: -0.09% 🇬🇧GBP: -0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/0T6Gdfci9d
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.41% France 40: 0.99% FTSE 100: 0.54% Wall Street: -0.06% US 500: -0.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/9YQNC5TRy0
  • Heads Up:🇧🇷 BCB Copom Meeting Minutes due at 11:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-01-26
  • Defensive stocks have proven critically important when navigating stock market volatility. Find out what are the most defensive stocks here:https://t.co/TMcbMALtbw https://t.co/gEojx3lvZH
  • The London trading session accounts for around 35% of total average forex turnover*, the largest amount relative to its peers. The London forex session overlaps with the New York session. Learn about trading the London forex session here: https://t.co/dWaWQ0MK1V https://t.co/GIR5NQK5G7
  • Italian PM Conte confirms to cabinet that he is resigning - government source https://t.co/tYi5sjp79w
  • BoJ's Kuroda says monetary policy does have some limits in trying to achieve inflation target $JPY
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in EUR/JPY are at opposite extremes with 66.22%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/RaCg87Zqau
  • Yen, Dollar May Extend Rise as Stocks Fall After China Drains Liquidity - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2021/01/26/US-Dollar-May-Extend-Rise-as-Stocks-Fall-After-China-Drains-Liquidity.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #Dollar #jpy #China #PBOC https://t.co/l14R7r65XH
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/YPng7ACJtV
New Zealand Dollar Looks to GDP Hype, US CPI & Trade Developments

New Zealand Dollar Looks to GDP Hype, US CPI & Trade Developments

Daniel Dubrovsky, Analyst
New Zealand Dollar Looks to GDP Hype, US CPI & Trade Developments

New Zealand Dollar Fundamental Forecast: Neutral

Talking Points:

  • New Zealand Dollar was exposed to US tariff signing and North Korea denuclearization
  • The currency will be facing a local GDP release in which the RBNZ has high hopes for
  • On the external front, next week also brings US CPI and ongoing trade developments

Have a question about what’s in store for New Zealand Dollar next week? Join aDailyFX Trading Q&A Webinarto ask it live!

A lack of key economic news flow from home meant that the New Zealand Dollar was exposed to external factors this past week. In particular, on US protectionism and North Korean developments which stirred sentiment in the markets. The former concluded with Donald Trump signing his tariff proposals while excluding neighboring countries. The latter promised to refrain from conducting more missile tests.

Next week looks to be like a similar scenario for the Kiwi Dollar, but with the addition of risks from home. New Zealand’s fourth quarter GDP is due on Wednesday. Growth is expected to increase to 3.1% y/y from 2.7% in the third quarter. Such an outcome would mean the fastest pace of expansion since 2016. The RBNZ seems to have high hopes for this when it mentioned that growth was expected to strengthen going forward.

But before this data crosses the wires, we will receive the US CPI report on Tuesday. The headline inflation rate is expected to tick up to 2.2% y/y from 2.1%. The core rate on the other hand is expected to remain unchanged at 1.8%. If a surprise to the upside further firms Fed rate hike bets, the New Zealand Dollar’s appeal could be undermined as it becomes more evident that it will lose its yield advantage to the greenback.

Outside of economic data releases, Kiwi Dollar traders should keep an eye out for news that are related to Mr. Trump’s tariff proposals. Actions ranging from countries retaliating to the possibility of more being exempt could stoke volatility in the sentiment-linked unit.

What could even be underpriced in the markets is the potential for Italian political risk. The country was left with a hung parliament after a general election in which the eurosceptic Five Star Movement was left with the most votes for a single party. News that a majority government forms with the anti-euro party could induce risk aversion. Taking these things into consideration, on balance this points to a neutral forecast.

New Zealand Dollar Trading Resources:

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES