The New Zealand dollar extended its rally today, reaching the highest rate since September 2011 against its US peer, as retail sales grew last quarter more than was expected.
New Zealand retail sales grew 2.1 percent on a seasonally adjusted basis in the fourth quarter of 2012 from the previous quarter, when they fell 0.2 percent. The expected growth was 1.3 percent. The report added to the positive data about manufacturing and consumer confidence, further increasing the appeal of the New Zealand assets.
All in all, the New Zealand economy looks really good compared with most of the developed nations. That means the Reserve Bank of New Zealand is not likely to ease its monetary policy and such outlook is positive for NZD.
NZD/USD rose from 0.8503 to 0.8514 as of 2:58 GMT today after touching the high of 0.8532. NZD/JPY went up from 78.95 to 79.05.
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