Kiwi down on weak retail sales

JAZIAL CROSSLEY
Last updated 17:18 14/11/2012

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The New Zealand dollar fell against the greenback today after weaker than expected retail sales figures were released.

The kiwi recently traded at US81.68c, down from US81.90c in the morning. On the Trade Weighted Index against major trading partners' currencies, it was at 73.10, down from 73.35 earlier.

Statistics New Zealand revealed mid-morning that New Zealanders spent $139 million less in the three months to September, with sales down 0.8 per cent overall after a 1.1 per cent rise the previous quarter.

"The kiwi today was all about the retail sales number that was much weaker than expected. The kiwi fell 40 basis points after the data came out. It has slightly recovered but this was more confirmation that the third quarter was a weak one in the New Zealand economy," Westpac market strategist Imre Speizer said.

"There was a little bit of Australian news that didn't have a great impact on the kiwi [a survey showed improved consumer confidence], there was no major news from elsewhere overseas."

Markets continue to watch the United States market for progress on the fiscal cliff, and any news from indebted European nations Greece and Spain.  

On the crosses, the kiwi recently traded at 78.12 Australian cents, down from A78.46c earlier. It was at 64.19 euro cents, down from 64.46 euro cents earlier. The kiwi fell to 51.40 pence, from 51.59 pence earlier. It was at 64.90 Japanese yen, a fall from 65.04 yen earlier.

Speizer expected the kiwi to trade between US81.60c and US82.00c overnight, with a bias towards the downside.

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- BusinessDay.co.nz

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