Kiwi falls to two-week low before retail sales, omnibus of global data
The kiwi dips after weak Japanese growth figures sap risk appetite and traders await retail sales data locally and economic growth and inflation figures out of Europe.
BUSINESSDESK: The New Zealand dollar fell to a two-week low after weaker-than-expected Japanese growth figures sapped risk appetite and traders awaited retail sales data locally and economic growth and inflation data out of Europe.
The kiwi traded at 80.90 US cents, down from 81.14 cents at 5 pm yesterday. The trade-weighted index slipped to 72.74 from 72.98.
Japan’s economy grew 0.3% in the second quarter, less than half the pace expected. Figures today are expected to show New Zealand retail sales rose 0.7% in the second quarter, after contracting three months earlier.
In Europe, data tomorrow may show gross domestic product shrank 0.2% last quarter, while US data this week includes retail sales, consumer prices and industrial production.
“There was a bit of risk coming off overnight with Japanese GDP being a bit weak,” said Stuart Ive, currency strategist at HiFX. With the raft of global economic data pending, “we’re seeing long positions coming off”.
He says the kiwi may trade in a range of 80.70 US cents to 81.30 cents today. The retail sales report “could nudge the kiwi one way or the other” but “local data is a very small part in a very big picture”.
Stocks fell in the US overnight, with the Dow Jones Industrial Average falling 0.3%, while US Treasury bonds gained, pushing yields lower.
Gold weakened overnight amid speculation central banks may not provide the additional stimulus some in the market are betting on.
The kiwi was little changed at 76.84 Australian cents and fell to 51.56 British pence from 51.75 pence late yesterday.
It fell to 65.57 euro cents from 66 cents as the euro gained against the greenback and dropped to 63.34 yen from 63.52 yen.
Jonathan Underhill
Tue, 14 Aug 2012
Tue, 14 Aug 2012
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Kiwi falls to two-week low before retail sales, omnibus of global data
22926