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New Zealand dollar slides on weaker-than-expected retail sales
NZ retail sales fell 0.5% quarter over quarter in April to June, the first contraction in nearly two years, pulling NZD/USD to around 0.5960.
FXStreet reports the New Zealand dollar eased against the US dollar on Monday, with NZD/USD retreating from Friday’s highs near 0.6000 to session lows around 0.5960.
The move was linked to New Zealand retail sales, which declined 0.5% from April to June, versus expectations for a 0.1% increase, according to data released earlier in the day by Statistics New Zealand.
FXStreet notes the first contraction in nearly two years followed a 0.1% rise in the prior quarter, and that the report is closely watched as an indicator of consumer spending that can influence inflation expectations and, in turn, Reserve Bank of New Zealand interest rate outlook.
The outlet also points to a softer US dollar backdrop, citing concerns about US debt and uncertainty around Federal Reserve policy, alongside a thin US calendar and geopolitically driven risk sentiment ahead of planned US Treasury sanctions measures expected later in the day.