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Kiwi Firmer as Retail Sales Jump

Published November 27, 2019

The Kiwi Dollar opens higher this morning although still within its recent range around the 64 US cent level. The local currency was boosted by better than expected retail sales data, which showed 1.6% growth for Q3 vs Q2. Markets had been expecting an increase of just 0.5%. Elsewhere, most currencies were stuck in their recent ranges, with the first batch of this weeks US economic data released last night not having much of an impact.

US Data Mixed

The USD was mainly firmer, making ground vs the EUR and JPY, as data released last night was mixed. US Consumer Confidence was weaker than expected, dropping for the fourth consecutive month, while the US goods trade deficit unexpectedly narrowed in October. US Fed Chairman Powell spoke in Rhode Island last night signalling that monetary policy is likely to be on hold for the foreseeable future, barring a material change in economic conditions.

GBP Weaker on Election Polls

The British Pound gave back some of its recent gains after the release of the Kantar poll, which showed the left-wing Labour Party had narrowed the lead of the Boris Johnson-led Conservatives. The Pound direction hinges on the UK December 12 election result, with a Conservative majority perceived as the most bullish scenario for the currency.

The Day Ahead

On the local front we have NZ trade balance data at 10.45 this morning, while overseas we have more US data this evening with Durable Goods Orders, GDP, and PCE Core data all due at 2.30am tomorrow morning.