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NZD traders, like their close cousins in Australia, might have to deal with something of a paradox over the next month when it comes to analyzing fundamental data.
While the economic situation improves, the data reports might be showing worse conditions. And the currency just might strengthen, even with unexpectedly bad data.
There is an important caveat, though. This depends on information coming out of China, and it’s not unheard of that the authorities in the Asian Giant make sure their reports reflect political goals more than reality.
However, China’s response to the coronavirus outbreak has come under unparalleled international scrutiny, with a wealth of information sources available.
New Zealand & the COVID-19 Outbreak
One would expect the Kiwis to be more affected by the virus outbreak than by the trade war. This is unlike with Australia, where the effect is the reverse.
New Zealand ...
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