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Forex - Kiwi drops in early Asia on retail sales, RBA minutes ahead

ForexFeb 15, 2016 06:04PM ET
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Kiwi weaker after retail sales

Investing.com - The Kiwi drifted lower in Asia on Tuesday as retail sales disappointed with central banks minutes from Australia on the cards ahead.

NZD/USD traded at 0.6636, down 0.16%, while AUD/USD changed hands at 0.7133, down 0.06% and USD/JPY traded at 114.45, down 0.14%.

In New Zealand, retail sales quarter-on-quarter rose 1.2% in the fourth quarter, weaker than the 1.4% gain expected. Ahead, the Reserve Bank of Australia releases monetary policy board meeting minutes.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 96.75.

Overnight, the dollar pushed broadly higher against the other major currencies on Monday, as Friday’s upeat U.S. retail sales data continued to support and as comments by Japanese Prime Minster Shinzo Abe still weighed on the yen.

Trading volumes were low on Monday with U.S. markets closed in observance of Presidents' Day.

The Commerce Department said on Friday that retail sales rose 0.2% last month, beating expectations for an increase of 0.1%.

Retail figures used to calculate gross domestic product, which exclude cars, fuel, building materials and food services, rose 0.6% in January after a 0.3% fall in the previous month.

Meanwhile, the yen weakened after Japanese Prime Minister Shinzo Abe told parliament that "excessive currency volatility is undesirable," and said Tokyo will take appropriate action in the exchange rate market as needed.

Separately, data earlier showed that Japan’s gross domestic product contracted by an annualized 1.4% in the three months to December, worse than expectations for a contraction of 1.2%, following a revised 1.3% expansion in the second quarter.

Also Monday, data showed that China’s exports fell 11.2% in January from the same month a year earlier, following a drop of 1.4% in December. Economists had forecast a far more modest decline of 1.9%.

Imports dropped 18.8% last month after falling 7.6% in December, compared to expectations for a 0.8% decrease.

Forex - Kiwi drops in early Asia on retail sales, RBA minutes ahead

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