New Zealand’s retail sales fell 0.5% in Q2, missing forecasts and marking the first contraction in nearly two years.
The New Zealand Dollar retreated from recent highs against the US Dollar on Monday, pressured by weaker-than-expected retail sales data. NZD/USD dropped to near 0.5960 after peaking at 0.6000 on Friday, though the broader uptrend remains intact amid USD weakness tied to US Treasury bond buyback plans.
New Zealand’s retail sales declined 0.5% in the second quarter, defying market expectations of a 0.1% increase. The contraction, the first in nearly two years, follows a modest 0.1% gain in the prior quarter. The data underscores softening domestic consumption amid broader economic uncertainty.
The US Dollar stayed on the defensive, weighed by concerns over debt levels and unclear Federal Reserve policy signals. Markets await details of new US sanctions on Iran, which could further influence risk sentiment later in the day.