Retail Sales contracted in Q3, surprising the majority of analysts who forecasted a mild increase. Core retail sales decrease by 0.3% amidst a 0.6% estimate, while Retail Sales dropped 0.4% vs a 0.4% estimated gain. This new development pressed Kiwi lower which was already softer due to the weak employment data announced last week.
NZD/USD M5
A new trading range has been established following the news, with the current resistance slightly above 0.817, and a good distance away from the previous support around 0.8185.
AUD/NZD M5
The weakness of Kiwi is best demonstrated by AUD/NZD, which shows stability in prices before and after the news, implying a change in fundamental pricing difference and not due to knee-jerk overreaction.
NZD/JPY M5
On the other hand, NZD/JPY has recovered due to JPY weakening on political concerns as PM Noda indicated that current Parliament will be dissolved on Nov 16th. We're currently trading in the range pre Retail announcement with 65.0 acting as support once more should the bullish move fades.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
