We have updated our privacy policy and terms & conditions. Find out more here.

Forex - NZD/USD climbs following retail sales report

ForexFeb 15, 2013 03:59AM GMT Add a Comment
Share with a Friend
Thanks for sharing
Emails have been sent to:
To send more emails click here
Investing.com – New Zealand’s dollar advanced mostly against its U.S. rival during Friday’s Asian session on news of strong retail sales data.

In Asian trading Friday, NZD/USD rose 0.01% to 0.8512. The pair was likely to find support at 0.8450, the session low and resistance at 0.8546, the high of February 9.

In a report, Statistics New Zealand said retail sales there jumped 2.1% in the fourth quarter of 2012, easily topping economists’ expectations of growth of 1.4%. That is good for the best rate of growth in six years, indicating that despite the negative impact the Kiwi could have on New Zealand exporters, the economy there is performing well.

Twelve of 15 retail sub-sectors in New Zealand showed growth during the quarter with impressive gains for construction and department stores.

The retail sales data follows a report released Thursday that showed New Zealand consumer confidence climbed to a 32-month high. In a separate report issued Thursday, Business New Zealand said that its index of manufacturing activity hit a seven-month high in January, rising to 55.2 from a reading of 50.4 the previous month.

Clearly, the recent batch of data indicate New Zealand’s economy is in decent shape, but those data points may not do much to help the country’s export-dependent industrial sector. With the economy there in solid form, the central bank may not see the need to lower interest rates in an effort to weaken the Kiwi.

In fact, some market participants have said there is chance Reserve Bank New Zealand will raise rates next year. Analysis by Credit Suisse shows the Reserve Bank could hike rates by nearly 30 basis in the coming 12 months.

The tight monetary policy is stark departure from other developed markets such as the U.S. and Japan, which have engaged in aggressive easing policies that have weakened their currencies.

Elsewhere, AUD/NZD rose 0.07% to 1.2181 after the Kiwi earlier touched a two-and-a-half-year high against the Aussie dollar. NZD/JPY slid 0.47% to 78.7.

Forex - NZD/USD climbs following retail sales report

Related Articles

Dollar remains lower vs. rivals after mixed U.S. data
Dollar remains lower vs. rivals after mixed U.S. data
By Investing.com - Feb 27, 2015

Investing.com - The dollar remained lower against a basket of other major currencies on Friday, after a string of U.S. data painted a mixed picture of the strength of the country's...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Are you sure you want to delete this chart?

Successfully Reported

Thank you. This comment has been flagged for a moderator.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.