By CountingPips.com
New Zealand retail sales increased by more than expected in December as consumer spending on retail goods advanced after two months of no gains, according to a report by Statistics New Zealand. Total retail sales increased by 0.8 percent in December to surpass market forecasts that were expecting a 0.4 percent advancement for the month. The retail sales data from November and October had shown no change from the previous month. New Zealand’s retail sales have now increased by 2.5 percent from the February 2009 level and have averaged a rise of 0.3 percent per month since that period.
Core retail sales, excluding the automobile related industries, increased by 0.8 percent in December after core sales rose by 0.5 percent in November.
Boosting the retail sales numbers in December were a 3.8 percent gain in automotive fuel retailing and a 7.3 percent increase in “other retailing” which includes used goods, flowers & gardening supplies, jewelery and antique sales. Also contributing to the increase in retail sales were gains in department stores, liquor retailing and automotive electrical, smash repairs and tyres. Motor vehicle retailing was the largest negative contributor to the December sales report.
Kiwi edges higher after report but still lower on day.
The New Zealand dollar bounced a bit higher immediately following the retail sales report but has been under pressure most of the day in forex trading. The NZD has fallen in trading today versus the US dollar, Euro, Australian dollar, Canadian dollar and Japanese yen. The NZD/USD pair has fallen by approximately 110 pips today while the NZD/JPY pair has also declined by over 100 pips as the U.S. dollar and Japanese yen have traded higher on investor risk aversion.
NZD/USD 30 minute Chart – The New Zealand dollar dropping sharply today in forex trading versus the US dollar. This pair broke out of its short-term declining price channel sharply to the downside before finding its support level around 0.7185.
