Morning Preview: Markets Get Moving as Kiwi gets Annihilated
Rowan Crosby • 1 min read
Finally, we have some volatility back on the markets and there were some pretty big developments overnight. None more so than the Kiwi which got absolutely smashed on the back of a new Government that markets were kind of scared of. The NZD fell away badly in late trade when news began filtering through.
Elsewhere we saw a bit of a rally in the Euro and the USD/JPY fell away after once again failing at the 113.00 level.
The economic calendar is thin throughout the Asian session, which most of the focus on how the Kiwi will respond when Asian markets open. We haven’t quite reached the 0.7000 mark which I think is every chance to be tested. What will be interesting is if there is any more follow through to be had.
NZD/USD – 240 min Chart.
Often times markets can really overreact, especially to the downside. In the case of the Kiwi, perhaps the new left sitting government, might be viewed as slightly less positive. However the party that holds the balance of power, New Zealand First has strong views on immigration and protecting New Zealand.
Should be an interesting Asian session to round out the week.
Top Economic Data for Friday
CAD – CPI & Retails Sales
USD – Existing Home Sales