The New Zealand dollar fell today after retail sales data for the March quarter was weaker than expected.The value of seasonally adjusted total retail sales rose by 0.2% in the quarter.Pundits were expecting a slightly higher rise and the New Zealand doll
The New Zealand dollar fell today after retail sales data for the March quarter was weaker than expected.
The value of seasonally adjusted total retail sales rose by 0.2% in the quarter.
Pundits were expecting a slightly higher rise and the New Zealand dollar dipped from 71.52USc to 71.20USc immediately in the wake of the figures being released this morning. It was 71.37USc at 5pm from US71.70c at 5pm yesterday.
"It was the usual knee-jerk reaction – it is weaker, so sell it. Economically, it is not so justified as the overall flavour of the release is within the bounds of what most economists expected," said Imre Speizer, currency strategist at Westpac. "It is not what I would call a shock by any means."
He said the market was in the mood to sell the New Zealand dollar and sentiment was bearish worldwide.
The Australian dollar had been sold in the last week as traders holding long positions closed them out. Investors were turning their attention to the NZ dollar, which had not been pummeled yet because rate rises were expected and the economy was improving, he said.
The NZ dollar was worth 79.56Ac at 5pm, from 79.67Ac at the same time yesterday. It was €0.5688 from €0.5664, ¥66.30 from ¥66.82 and 48.78p from 48.27p yesterday.
The trade weighted index fell to 68.20 from 68.30 yesterday.
The euro steadied in Asian trading near 14-month lows against the dollar on concerns that a fiscal tightening in Europe will dampen economic growth.
