As Asian stocks climbed the New Zealand Dollar was able to recoup recent losses. The South Pacific currency was also supported by the publication of domestic retail sales data, despite the figure being less impressive than expected.
The New Zealand Dollar exchange rate was trading in the region of 0.8279 against the US Dollar as of 09:55 am GMT
Although retail sales climbed by 0.5 per cent in the first quarter of this year, showing growth across most sectors, the result fell short of the 0.8 per cent advance expected. The main drag on the headline figure was a drop in spending on clothing, for which the unseasonably warm Autumn was cited as a key cause.
In response to the result one Australian economist commented: ‘It’s a good mix of the retail sector performing reasonably well, but with not a lot of inflationary pressure to knock it. When the US Dollar is firm then the Kiwi is likely to not get quite as buoyant as it was a few weeks ago.’
The data has helped to reassure investors that the retail sector is improving nationwide, a positive step on the road to economic recovery.
The New Zealand Dollar, which climbed to 82.83 cents before the close of local trade, was additionally supported as Asian stocks rose, boosting the appeal of higher-risk assets.
The ‘Kiwi’ could experience additional movement in the hours ahead following the Australian budget announcement. Treasurer Wayne Swan has intimated that the key focus of the budget will be economic growth.
Prior to the announcement the ‘Aussie’ strengthened from an 11-month low against the US Dollar and one currency strategist remarked: ‘The budget is probably not going to be as contractionary as the market is thinking. We may see a bit more of a bounce in the Aussie, but it will probably be another opportunity to sell the currency as it rallies.’
Current Exchange Rates:
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The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8279 >
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6369 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5409 >
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8309 >
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2089 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.8470 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.5685 <
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2068 >
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1953 >
(Correct as of 09:55 GMT)
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