Forex: Anti Kiwi flows as NZ retail sales disappoint; RBNZ cut being priced in
FXstreet.com (Barcelona) - Just as it happened last November 7 on a terrible jobs report, the NZ Dollar is selling again at the NY close following downbeat retail sales in Q3 Q/Q, which stood at -0.4% vs. exp. 0.4%. The previous quarter read came at +1.3%.
NZDUSD has plummeted over 40 pips from its day/NY session high of 0.8202, currently re-visiting the double bottom printed through Asia/Europe at 0.8158. Should 0.8155/50 be cleared out, immediate support is seen at 0.8125, November 9 low.
An even more vigorous dump of Kiwis was seen through the AUDNZD, unraveling its stagnant trading pattern in the neighborhood of 1.2720-40 to currently make fresh new highs at 1.2790, just like BNZ Analysts had expected.
The bad streak of fundamental indicators in New Zealand, with the latest slowdown hitting core pillars of the economy like jobs and consumer consumption, will only help to talk up the case for an interest rate cut by the RBNZ when they meet again in December. At this point, judging by the weakness in the NZ Dollar, looks like the market is already busy pricing this scenario in.
NZDUSD has plummeted over 40 pips from its day/NY session high of 0.8202, currently re-visiting the double bottom printed through Asia/Europe at 0.8158. Should 0.8155/50 be cleared out, immediate support is seen at 0.8125, November 9 low.
An even more vigorous dump of Kiwis was seen through the AUDNZD, unraveling its stagnant trading pattern in the neighborhood of 1.2720-40 to currently make fresh new highs at 1.2790, just like BNZ Analysts had expected.
The bad streak of fundamental indicators in New Zealand, with the latest slowdown hitting core pillars of the economy like jobs and consumer consumption, will only help to talk up the case for an interest rate cut by the RBNZ when they meet again in December. At this point, judging by the weakness in the NZ Dollar, looks like the market is already busy pricing this scenario in.
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