New Zealand’s retail sales contracted 0.5% in Q2, missing forecasts and weighing on the Kiwi against the USD.
The NZD/USD pair fell to 0.5970 in early Asian trading after New Zealand’s retail sales declined 0.5% quarter-over-quarter in Q2, worse than the expected 0.1% drop. The prior quarter’s gain was revised up to 1.0% from 0.9%.
Excluding autos, sales rose 0.7% in Q2, slowing from a revised 1.1% increase in Q1. The data underscores weaker domestic demand, pressuring the Kiwi.
The USD found support from safe-haven flows amid escalating US-Iran tensions, further capping the pair’s upside.