Poor Retail Sales (NZD)

The NZD/USD pair remains an offer 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.

Retail sales volumes were up 0.1% last quarter far weaker than the forecast rise 0.5% and the 2.3% jump in sales in the first quarter. It's another poor print from the NZ economy that may lead to another rate cut from the RBNZ. In our opinion the Bank will cut rates twice this year and with the FED raising rates the pair may head even towards 0,6000 by the year end.