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14 Aug 2015
NZD/USD: deep in the red near 0.6550, poor Q2 retail sales weigh
FXStreet (Mumbai) - NZD/USD extends overnight downside bias and keeps losses in the Asian morning, as the Kiwi was received a fresh blow from the latest downbeat NZ Q2 retail sales which added to the recent series of weak NZ fundamentals.
NZD/USD mires near 0.6546 lows
Currently, the NZD/USD pair drops -0.30% to 0.6551 and is poised to test 0.65 barrier in the day ahead. The NZD/USD pair remains heavy at Tokyo open as markets digest the overnight release of retail sales data from New Zealand for the second quarter which revealed that retail spending rose at a slower than expected pace last quarter.
Retail sales volumes were up 0.1% last quarter, according to Statistics New Zealand, far weaker than the forecast rise 0.5% and the 2.3% jump in sales in the March quarter.
In contrast, a slightly upbeat US retail sales data released on Thursday also added to speculations of Sept Fed rate hike driving the buck higher across the board, keeping NZD/USD undermined.
While the recent news that S&P rating agency placed the dairy giant Fonterra rating on credit watch negative also added to the losses in the Kiwi pair.
Meanwhile, markets now await key US economic release later today for further momentum on the pair.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6600 levels and above which it could extend gains 0.6656 (Aug 12 High) levels. To the downside immediate support might be located at 0.6515 (Aug 11 Low) below that at 0.6499 (Aug 6 Low).
NZD/USD mires near 0.6546 lows
Currently, the NZD/USD pair drops -0.30% to 0.6551 and is poised to test 0.65 barrier in the day ahead. The NZD/USD pair remains heavy at Tokyo open as markets digest the overnight release of retail sales data from New Zealand for the second quarter which revealed that retail spending rose at a slower than expected pace last quarter.
Retail sales volumes were up 0.1% last quarter, according to Statistics New Zealand, far weaker than the forecast rise 0.5% and the 2.3% jump in sales in the March quarter.
In contrast, a slightly upbeat US retail sales data released on Thursday also added to speculations of Sept Fed rate hike driving the buck higher across the board, keeping NZD/USD undermined.
While the recent news that S&P rating agency placed the dairy giant Fonterra rating on credit watch negative also added to the losses in the Kiwi pair.
Meanwhile, markets now await key US economic release later today for further momentum on the pair.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6600 levels and above which it could extend gains 0.6656 (Aug 12 High) levels. To the downside immediate support might be located at 0.6515 (Aug 11 Low) below that at 0.6499 (Aug 6 Low).