Strong Retail Sales Boosts NZD

Wednesday, August 22 – Asia Session Recap

During the Asia-Pacific session, the main event was New Zealand Retail Sales for Q2.

The report was overall positive with Retail Sales printing at 1.1% versus market consensus of 0.3% and last quarter’s 0.1%.

As such, NZD has remained well supported with NZDUSD breaking above the 0.67 handle and AUDNZD now firmly below the 1.10 handle.

Regarding AUD, ongoing political tensions continue to weigh on sentiment. PM Turnbull stated that tax cuts for large companies failed to pass the Senate and they will not be taking the plan into the next election.

Regarding USD, Trump’s earlier comments this week on the Fed and monetary policy continue to weigh on USD sentiment. GBPUSD continues to trade above the 1.29 handle while EURUSD remains well supported after yesterday’s test of the 1.16 handle.

For additional research, we’ve posted news articles from around the web below.

Trump says he will keep criticizing Fed if it continues to raise interest rates