NZD Exchange Rate Climbs as New Zealand Retail Sales Jump on Car Sales Increase

15 May 2017 by News Desk   |   SHARE  

The New Zealand dollar was able to make gains against the US dollar (NZD/USD), pound (NZD/GBP), and euro (NZD/EUR) during Monday’s trading following the release of positive retail sales numbers.

Statistics New Zealand registered in the three months through the end of March retail sales jumped by 1.5%, boycotting the 0.9% forecast economists had expected.

Statistics New Zealand stated: ‘The demand for cars may reflect New Zealand’s growing population, with net migration remaining at record levels into 2017, and the relatively low cost of new vehicles.’

The release was seen as Kiwi dollar positive as investors await the Reserve Bank of New Zealand (RBNZ) Governor speech due later in the session.

Last week the central bank adopted a dovish tone, suggesting that economic indicators may not perform as well as forecasts have suggested. The central bank also stated that it expected interest rates to remain at record lows of 1.75% until 2020.

Bank of New Zealand (BNZ) economist Craig Ebert commented: ‘The economy is looking quite normal verging on strong and in that sense it’s at odds with a cash rate which is really well below any levels of normality. Their debate is really about where we’re going and what could happen, there’s an emphasis on uncertainty on things that might trip us up.’

Disclaimer: This economic update is provided by FC Exchange a Global Reach Group Company, industry leaders in foreign exchange. Authorised affiliates are permitted to reuse content.

Learn more about the Australian Dollar – Contact FC Exchange: Get A Quote

Want to live and work Down Under? Click here for expert help: Skilled Migration to Australia

Want to get a job Down Under? Click here for expert help: How to Get a Job in Australia

Click here for expert help with travel visas: Travel Visas to Australia

Click here for tourist information about Australia: Visit Australia