Kiwi near one-week high vs. dollar after strong retail sales

kiwi soars vs dollar fxcommentThe New Zealand dollar traded near one-week higher versus its U.S. counterpart on Thursday after a report showing retail sales for the quarter through March grew at the fastest pace since at least 2003.

Retail sales climbed 2.7 percent in the first quarter from 1.9 percent in the previous quarter, beating analysts’ forecast of 1.6 percent.

The Aussie also touched a four-month high against the green currency, despite efforts from policymakers at both central banks to keep their currency weak.

Central banks of New Zealand and Australia have been trying to weaken their currencies to reinvigorate growth after the slowdown in China’s growth, the biggest trading partner for both economies.

However, it is reasonable to claim that the rise in the kiwi was a net result for the retreat in the dollar, which plunged to a four-month low versus a basket of major currencies after the release of downbeat U.S. retail sales data.

The lackluster U.S. economic data have raised speculations the Fed would push back its interest rate hike decision.

Later in the day, the U.S. will release its jobless claims figures for last week, which may show a rise to 272,000 from 265,000 a week earlier.

For technical outlook and targets for the NZDUSD, please check NZDUSD: Additional recovery in store

Ahmed Mamdouh

Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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