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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
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AUD/NZD
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NZD/JPY
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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.


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