NZD/USD
NZD/USD

NZD/USD was at a standstill earlier on Tuesday after the release of New Zealand’s retail sales data for the second quarter. The pair inched slightly higher to trade at $0.6899.

New Zealand’s Retail Sales

According to data publishes by Stats NZ earlier on Tuesday, the total retail sales volume advanced 3.3% in the June 2021 quarter, following a 2.8% rise in the March 2021 quarter. Most retailers reported an increase in sending across all regions. According to them, customers majored their spending on big-ticket items such as vehicles and electrical goods in the June quarter.

Electrical and electronic goods led the gains in sales volumes after jumping 6.9%. Food and beverages followed closely, climbing 5.6%. Including the effects of price changes, the seasonally adjusted value of total retail trade sales rose 4.0% in the second quarter.

Food and beverage services had the largest dollar value increase, up 7.0% in the June quarter. Sales volumes for motor vehicle and parts retailing were above $4 billion, hitting records high. The industry recorded a 4.6% increase in the same quarter.

The overall total value of retail sales jumped 37% compared to the June 2020 quarter when the Covid-19 virus struck.

The NZD/USD pair will react to the US New Home Sales data for July due later in the day. Economists expect the new home sales for the previous month to come in higher at 700,000.

NZD/USD Technical Analysis

The NZD/USD pair took a deep dive of almost 4% last week before bouncing back on Monday. The currency pair has jumped more than 1% in the last 24 hours snapping its seven-day losing streak.

The currency pair is trading below the 25 and 50-day exponential moving averages, hinting at a bearish trend. It is also trading below the 200-day moving average, reinforcing the bearish outlook.

Therefore, further weakness is likely to be demonstrated once the currency pair moves below the support at $0.6800. However, a move above the 50-day EMA will invalidate this view. If this happens, the next suitable target will be the resistance at the 200 DMA at $0.71120.

Leave a Reply

Your email address will not be published. Required fields are marked *

Sign Up for Our Newsletters

Get exclusive content in your inbox.

You May Also Like

EUR/USD Forecast Ahead of US Inflation and Retail Sales Data

The EUR/USD pair surged on Friday after the disappointing US non-farm payrolls (NFP) data. The US will publish the latest inflation and retail sales data.

GBP/USD Forecast with BoE Interest Rate Decision on the Horizon

GBP/USD is seesawing along 1.3800 ahead of the BoE interest rate decision. It is likely to be range-bound between 1.3800 and 1.3900 ahead of the event.

GBP/USD Forecast Ahead of the UK Retail Sales

GBP/USD has eased on its decline ahead of the UK retail sales data. The data comes at a time when UK government postponed reopening by a month.

AUD/USD rebounds as Fed officials downplay inflation fears

AUD/USD is rebounding after Fed officials downplayed the ongoing inflation fears. US retail sales also missed the estimates by remaining stagnant.