The New Zealand dollar was stable today as markets have entered a consolidation mode after optimism caused by the positive coronavirus vaccine news earlier this week started to wane. Macroeconomic data released in New Zealand overnight was mixed.
Statistics New Zealand reported that the output Producer Price Index fell by 0.3% in the September quarter after falling by 0.2% in the previous three months. Experts were not expecting any change. At the same time, the input PPI rose by 0.6% after dropping by 0.9% in the previous quarter. Analysts had predicted a decrease of 0.1%.
Earlier this week, the news about another coronavirus vaccine being close to completion put markets into a risk-on mode. But the optimism started to dissipate. Some market analysts argued that experts were talking about the vaccine from Moderna even before the announcement, meaning that the good news was already priced in. That could explain why the positive impact from the news did not last long.
Going forward, the kiwi will be reacting to news about the vaccine development as well as about the spread of the COVID-19 and measures to contain it. As for economic data in New Zealand, there are no particularly noteworthy reports scheduled for the rest of the week. Statistics New Zealand will release retail sales data at the very start of the next week’s trading.
NZD/USD rose from 0.6890 to 0.6914 as of 8:06 GMT today, bouncing from the daily low of 0.6876. NZD/CHF gained from 0.6279 to 0.6295, while its session minimum was at 0.6268. NZD/JPY was flat at 71.80 after reaching the session low of 71.57 earlier.
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