New Zealand Dollar edges down from highs amid soft retail consumption data
The New Zealand Dollar ticks down against the US Dollar on Monday, weighed by an unexpected decline in New Zealand’s Retail Sales in the second quarter of the year.
New Zealand's retail sales fell unexpectedly in Q2, with fuel and motor-related categories leading the decline. Core sales, however, remained strong, indicating durable domestic demand. The Reserve Bank of New Zealand (RBNZ) is expected to raise interest rates by 25 basis points to 2.75% on September 2, with a total of 75 basis points tightening over the next year.
While markets have priced in these hikes, upside potential for NZD/USD is limited as the currency has already surpassed rate differentials. Gold (XAU/USD) continues its upward trend, reaching its highest level since May near $4,650, following the US Treasury's announcement of increased liquidity support buyback operations.
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