The New Zealand Dollar Ends the Week on a High
The boost in market mood over the past week has seen the New Zealand Dollar perform excellently against a basket of other currencies.
NZD Leads Market Charge
The New Zealand dollar was the leading performer amongst the top currencies last week as risk appetite surges. The lousy performance of the US Dollar and the good news about the Chinese economy helped the Kiwi to become the best performing currency last week.
Against the US Dollar, the Kiwi went up by 1.3%, with the NZD/USD pair ending the week at 0.61. The Kiwi came in strongest against the Euro, as it recorded a 2.54% gain against this leading currency. The NZD/EUR was trading at 0.56 by the end of the trading session on Friday.
The New Zealand dollar also recorded massive profits against the Swiss Franc, the British Pound, and the Japanese Yen. The Kiwi only lost to the Aussie last week, as it went down by 0.48% against the Australian Dollar.
The US Dollar experienced a mixed week. However, it ended the week on a negative note as the United States economy continues to take a hit. The Greenback only performed well against the Euro, GBP, and CHF. It, however, fell behind other leading currencies, including the Canadian Dollar, the Aussie, the Yen, and the Kiwi.
The Yen also lost its gains after weeks of serving as the safe-haven currency. The increasing risk appetite among investors means that the NZD and other risk-appetite currencies are benefiting from the shift in the market momentum.
Upcoming Forex Events
This week has some exciting events in the financial markets. Here are some of the events you should keep an eye on.
US Core CPI: Tuesday, May 12
The consumer price index for April 2020 will be released on Tuesday. While the previous CPI YoY was 2.1%, the figure is expected to drop to 1.7% in April. The monthly CPI would drop to -0.2% for April, down from the -0.1% recorded in March. The drop is due to the reduction in spending by consumers as the Coronavirus pandemic affects the economy.
Australian Employment change: Thursday, May 14
The Aussie performed averagely this week, but the currency would be tested by the performance of the economy next week. After gaining 5.9K jobs in March, the Coronavirus-induced economic crisis has affected Australia, and they are set to record a job loss of 575K in April. The unemployment rate, which was previously 5.2%, is set to rise to 8.4%.
US Initial Jobless Claims: Thursday, May 14
As the United States slowly reopens its economy, the job data is expected to improve over the coming weeks. The initial jobless claims recorded in March was 3,169K. However, the number is set to drop to 2,500K for April.
US Retail Sales: Friday, May 15
The retail sales data for April is expected to be worse than that of March. In March, retail sales MoM was -8.4%, but it is set to decline to -11.6% in April. The lockdown efforts put in place to protect people from the Coronavirus pandemic affected this data and much more in the country.
The ForexSignal Trading Team is monitoring the Forex market closely and we will alert you when it is time to trade.