We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bullish
USD/JPY
Bearish
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bullish
More View more
Real Time News
  • Overnight index swaps are pricing in about a 67.6% probability of a Fed rate cut at the 07/29/2020 meeting -BBG #USD
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Silver: 0.26% Oil - US Crude: 0.20% Gold: 0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/J21ZFiuA4H
  • Some of the top event risk next week: (WED) RBNZ Official Cash Rate (THRS) Australian Employment Change (NOV) (THRS) Japan’s National Consumer Price Index (YoY) (NOV) #NZD #AUD #JPY
  • The #Euro snapped downward to overturn a would-be bullish breakout, signaling that sellers have reclaimed the initiative. Will they follow through this time? Get your market update from @IlyaSpivak here:https://t.co/bcdnjN4MzE https://t.co/MguYxFwgdq
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.23% 🇦🇺AUD: 0.16% 🇪🇺EUR: 0.11% 🇨🇦CAD: 0.07% 🇳🇿NZD: 0.04% 🇯🇵JPY: -0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/PZOhmaDnAg
  • Interesting to see how this will impact CDS spreads on sovereign bonds and impact on INR @ddubrovskyFX https://t.co/HuuJiEn8E4
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.02%, while traders in US 500 are at opposite extremes with 76.09%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/soA1hKBbBG
  • Some of top event risk over the next 24hrs are: UK’s General Election – Polls Open [7:00 GMT], European Central Bank Rate Decision [12:45], and Bank of Canada’s Stephen Poloz Gives Speech in Toronto [17:30] #GBP #EUR #CAD
  • The $USD may rise on the #FOMC rate decision, while the British Pound, Swedish Krona and Norwegian Krone may gain on the UK election and #ECB outlook. Get your market update from @ZabelinDimitri here: https://t.co/WvWHP8D710 https://t.co/4D8H070WIs
  • #LITECOIN Daily Pivot Points: S3: 41.46 S2: 42.58 S1: 43.02 R1: 44.14 R2: 44.82 R3: 45.94 https://www.dailyfx.com/pivot-points?ref=SubNav?CHID=QPID=917720
Upbeat New Zealand Retail Sales Report to Fuel NZD/USD Rate Rebound

Upbeat New Zealand Retail Sales Report to Fuel NZD/USD Rate Rebound

2018-08-21 19:30:00
David Song, Currency Strategist
Share:

Trading the News: New Zealand Retail Sales ex Inflation

Updates to New Zealand’s Retail Sales report may fuel the recent recovery in NZD/USD as household spending is expected to increase 0.3% versus the 0.1% during the first three-months of 2018.

Image of DailyFX economic calendar

Signs of stronger consumption may heighten the appeal of the New Zealand dollar as it instills an improved outlook for growth and inflation, and the Reserve Bank of New Zealand (RBNZ) may start to drop its cautious tone over the coming months as ‘employment is roughly around its maximum sustainable level.

However, another lackluster development may rattle the rebound in NZD/USD as it encourages the RBNZ to keep the official cash rate (OCR) at the record-low, and Governor Adrian Orr & Co. may stick to the current script at the next meeting on September 27 as officials warn that ‘the recent moderation in growth could last longer.’ Interested in having a broader discussion on current market themes? Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups!

Impact that the New Zealand Retail Sales has had on NZD/USD during the last print

Period

Data Released

Estimate

Actual

Pips Change

(1 Hour post event )

Pips Change

(End of Day post event)

1Q

2018

05/20/2018 22:45:00 GMT

1.0%

0.1%

-8

1Q 2018New Zealand Retail Sales ex. Inflation

NZD/USD 15-Minute Chart

Image of nzdusd 15-minute chart

Household spending in New Zealand increased 0.1% during the first three-months of 2018, with the previous reading revised down to reflect a 1.4% expansion versus an initial reading of 1.7%. A deeper look at the report showed demand for electrical goods increasing 5.4%, with sales of furniture/housewares climbing 2.4%, while discretionary spending on clothing/footwear narrowed 5.0% during the same period.

The New Zealand dollar struggled to hold its ground following the below-forecast print, with NZD/USD dipping below the 0.6900 handle, but the reaction was short-lived as the exchange rate closed the day at 0.6945. Learn more with the DailyFX Advanced Guide for Trading the News.

NZD/USD Daily Chart

Please add a description for the image.
  • Broader outlook for NZD/USD remains tilted to the downside following the last RBNZ meeting as both price and the Relative Strength Index (RSI) extend the bearish formations from earlier this year.
  • The rebound from the 2018-low (0.6544) is coming up against a key juncture as it approaches the former-support zone around 0.6710 (61.8% expansion) to 0.6720 (61.8% expansion), with a break above the stated region highlight a potential change in NZD/USD behavior.
  • Next topside region of interest comes in around 0.6780 (100% expansion) to 0.6790 (50% expansion) followed by the 0.6820 (23.6% retracement) to 0.6870 (78.6% expansion).

Additional Trading Resources

New to the currency market? Want a better understanding of the different approaches for trading? Start by downloading and reviewing the DailyFX Beginners Guide!

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader series on how to effectively use leverage along with other best practices that any trader can follow.

--- Written by David Song, Currency Analyst

Follow me on Twitter at @DavidJSong.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.