The RBNZ will hold a policy meeting next week and it looks like the country will be the first major economy to depart from accommodation policy after the pandemic.

Stellar employment data bolstered expectations of a rate hike that will be New Zealand's first since mid-2014. As a response to pandemic hit, the RBNZ slashed interest rate by 75 bp to 0.25% in 2020 risking to adopt NIRP policy, first time in its history.

Another major central bank event next week is the policy meeting of Norway's central bank, at which the policymakers may hint that interest rate hike may occur as early as in September.

Investors focused on the prospect of unwinding of Fed stimulus amid a recovery in the labor market pushed the dollar higher this week. However, the currencies of New Zealand and Norway may also benefit from hawkish stance of their Central banks. Downside potential in USDNOK and upside potential in NZDUSD will depend on hawkishness of forward guidance that the central banks will offer investors next week as rate hike statements are probably factored in the exchange rates.

The US economy is growing steadily and the labor market is recovering. Nevertheless, COVID-19 remains a deterrent, and it will become clear how consumers are doing in the next week. The US retail sales in July is in focus. The report is expected to show a monthly decrease of 0.2% in headline reading after an unexpected gain in June. The data will be released on Tuesday. Second-quarter earnings for the S&P 500 are expected to jump 93.1%, well above previous expectations of 65.4%, according to Refinitiv IBES data.