Retail sales in New Zealand fell short of expectations, supporting the mood for correction

Retail sales in New Zealand fell in July to 0,4%, announced today the country's statistical office. Nevertheless, a month earlier statistics showed a strong increase of 1,0%, so that current data show only a partial correction. The core rate of sales, excluding volatile items remains unchanged near a record high. In general, this is a good sign, but markets had expected more. It was expected that overall sales will remain unchanged, but the core rate instead of -0,1% (or more precisely -0.048%) add 0.1%.Such statistics are in unison with all other information in the market, coming this morning. Much of the news increases the demand for safe assets, such as Japanese and American state bonds, adjusting the positive start to the week. With respect to interest rates, a decision on which will be taken by the Reserve Bank of New Zealand this week, this news has not opened anything new. Apparently, the rate will be maintained at the current level of 3,0%, and may even remain so until the end of the year.

Translate this page