NZD/USD: Card Spending rises to 1.2 percent, NZD/USD continues down trend
The Takeaway:[ New Zealand post positive data.] > [The NZD/USD continues it's downtrend.] > [ Investors focused on upcoming rate decision.]
Total card spending rose today in New Zealand to post a modest 1.2 percent and retail card spending increased slightly to 0.9 percent. The positive data was not enough to turn the market around from it prevailing downtrend seen today. Higher card spending is typically a sign that the economy is expanding, but the market is reacting to much strong indicators of a weaker economy to come.
The NZD/USD rose briefly leading up of the announcement, but continued its downward trend. Traders are currently pricing the possibility of an economic decline in New Zealand, supported by an increasing unemployment rate and lower Q1 GDP growth. The positive data released today is negligible compared to the upcoming rate decision that is likely to be a main driver of the pair this week.
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