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NZD/USD slips below 0.6000 after weaker New Zealand retail sales
The New Zealand data showed Retail Sales down 0.5% QoQ in Q2 versus a 0.1% expected decline, while MUFG said RBA tightening may be underpriced in rates markets.
FXStreet reports the NZD/USD pair fell to around 0.5970 in early Asian trading on Monday, edging below the 0.6000 level after downbeat New Zealand retail sales data.
The decline follows Statistics New Zealand reporting that Retail Sales fell 0.5% QoQ in Q2 2026, worse than market expectations for a 0.1% drop. Retail Sales ex Autos rose 0.7% QoQ in Q2, compared with a 1.1% increase in Q1.
FXStreet also pointed to broader forces pressuring the pair, noting ongoing US-Iran tensions that have supported the US dollar as a safe haven. It added that Traders are watching US July PCE Price Index data later on Wednesday.
The outlet cited MUFG analysis that current market pricing understates potential further tightening by the Reserve Bank of Australia while overstating prospects for additional moves by the Reserve Bank of New Zealand. MUFG also argued that Middle East risks may be more supportive for the Australian dollar than for the Kiwi, keeping downside pressure on NZD/USD as rates expectations adjust.