The NZ dollar strengthened against the other major currencies in the Asian session on Monday after data showed that the total volume of retail sales in New Zealand climbed sequentially in the third quarter of 2014.
Data from Statistics New Zealand showed that retail sales in New Zealand jumped a seasonally adjusted 1.5 percent sequentially in the third quarter of 2014. That beat forecasts for an increase of 0.8 percent following the 1.1 percent gain in the previous three months. The last time the sales volume rose more than 1.5 percent was in the June 2012 quarter (1.9 percent), the stats bureau noted.
The total value of retail sales added 0.9 percent.
At the same time, another data from Business NZ showed that the services sector in New Zealand slowed slightly in October but continued to expand, posting a PMI score of 57.8.
That’s down from 58.0 in September, although it remains well above the boom-or-bust level that separates expansion from contraction. All of the regions also showed expansion, including Otago, Northern, Central and Canterbury.
In the New York session on Friday, the NZ dollar was lower against most major currencies. Nevertheless, the NZ dollar rose 0.12 percent again the the U.S. dollar, 0.74 percent against the yen and 0.05 percent against the Australian dollar on Friday.
In the Asian trading, the NZ dollar rose to a 7-year high of 92.78 against the yen, from last week’s closing quote of 91.93. If the kiwi extends its uptrend, it is likely to find resistance around the 93.20 area.
Data from the Cabinet Office showed that Japan’s gross domestic product unexpectedly contracted 1.6 percent on year in the third quarter of 2014, tipping the country back into recession. The headline figure was well shy of forecasts for an increase of 2.2 percent following the downwardly revised contraction of 7.3 percent in the second quarter (originally -7.1 percent).
Against the Australian and U.S. dollars, the kiwi advanced to nearly 4-week high of 1.1018 and nearly a 3-week high of 0.7974 from last week’s closing quotes of 1.1042 and 0.7905, respectively. The kiwi is likely to find resistance around 1.09 against the aussie and 0.80 against the greenback.
The kiwi jumped to a 4-day high of 1.5733 against the euro, from last week’s closing quote of 1.5828. On the upside, 1.56 is seen as the next resistance level for the kiwi.
Looking ahead, Eurozone trade data for September is due to be released in the European session.
In the New York session, U.S. empire state survey for November, industrial and manufacturing production data for October and data on covered bond purchases by the European Central Bank are due.
At 9:00 am ET, European Central Bank President Mario Draghi will testify on Monetary Policy before the Committee on Economic and Monetary Affairs in Brussels.
The material has been provided by InstaForex Company – www.instaforex.com