New Zealand Dollar, NZD / USD, Q2 Retail, Covid – Call Points
- New Zealand retail sales exceeded second quarter expectations by 3.3% and expected 2.5%
- The closure of Covid lasted until the end of the month in New Zealand, following an increase in cases
- NZD / USD rises back above the wedge-proof candlestick
Tuesday ‘s Asia – Pacific outlook
The risk sensitive New Zealand Dollar moves to a higher version US dollar when markets move back to risky assets. New Zealand’s second-quarter retail sales exceeded 3.3% quarter-on-quarter this morning, compared to a revised 2.8% in the first quarter. TAccording to a Bloomberg study, the average expectation of economists was 2.5%. Innovative economic data can help support the new strength of the Kiwi dollar.
However, New Zealand extended its closure as a government until the end of this month closed elimination strategy after a positive test of 35 people on Monday. Last week, the US dollar rose to a fresh peak in 2021 as traders began to appreciate the Fed’s more aggressive austerity policy. The sharp rise in Covid cases worldwide due to the Delta option also sent asylum flows to Greenback. These worries seemed to have abated.
Elsewhere, stocks are on top Wall Street benefit from wider risk movements in the markets. The United States is beginning to see optimistic signs of incidents in Delta hotspots. In addition, the Food and Drug Administration (FDA) gave full approval to the Pfizer-BioNTech Covid vaccine from the age of 16. Health policy experts believe this will help encourage groups hesitant about vaccines, which would further strengthen the people’s collective immunity compared to Covid.
The Asia-Pacific session on Tuesday will continue to summarize New Zealand’s retail figures, as the economic calendar for the rest of the session is relatively light. South Korean consumer confidence fell from 103.2 in August to 102.5. Later today, Thailand will announce new car sales for July, and the Philippines may release budget data from now until August 25. Traders will be watching the Jackson Hole Economic Policy Symposium later this week when Fed Chairman Jerome Powell speaks.
NZD / USD technical outlook:
NZD /USD rose back above the upper limit of the ascending wedge pattern, resulting in rupture a few weeks ago before falling near the 50-day moving average (SMA). The bullish engulfing candlestick over a four-hour period pointed to the possibility of a reversal of trends at the end of last week, leading to the current rise. A 50-day SMA may provide resistance to the rise.
NZD / USD four hour chart
The chart has been created TradingView
New Zealand Dollar Trading Resources
– Written by Thomas Westwater, DailyFX.com analyst
Be in touch Thomas, use the comments section or below @FxWestwaterTwitter