Investing.com - Financial Markets Worldwide

Forex - NZD/USD slightly higher after retail sales data

Published 08/13/2013, 09:38 PM
Updated 08/13/2013, 09:39 PM
NZD/USD
-
AUD/NZD
-
NZD/JPY
-

Investing.com - The New Zealand dollar traded slightly higher against its U.S. rival during Wednesday’s Asian session following retail sales reports out of both nations.

In Asian trading Wednesday, NZD/USD rose 0.06% to 0.7970. The pair was likely to find support at 0.7934, the low of August 8 and resistance at 0.8058, Monday's high.

Earlier Wednesday, Statistics New Zealand said that retail sales rose 1.7% last month after a June increase of 0.5%. Analysts expected a 1.3% July increase. Core sales climbed 2.3% compared with a 0.6% June rise. Analysts expected core sales to rise 1.3%.

In U.S. economic news out Tuesday, the Commerce Department said U.S. retail sales rose 0.2% last month, missing the expected increase of 0.3%. Excluding sales of cars, gasoline and building materials, U.S. retail sales advanced 0.5%.

The U.S. consumer accounts for about 70% of GDP in the world’s largest economy. The U.S. data sparked renewed speculation the Federal Reserve could move to taper its USD85 billion per month quantitative easing program, which would likely pressure commodities and commodities currencies such as the kiwi.

The New Zealand retail sales data serves as further evidence the economy there is gaining steam and that could give the Reserve Bank of New Zealand to consider interest rate increases.

RBNZ’s benchmark rate is 2.5% and the central bank has hinted it could raise rates if the housing market there becomes too hot. Traders expect RBNZ to raise rates early next year.

Elsewhere, NZD/JPY inched up 0.04% to 78.27 while AUD/NZD fell 0.38% to 1.1408.


Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.