NZ dollar increases from one-year lows
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The New Zealand dollar rose to around $0.586 on Monday, recovering from one-year lows as the US dollar weakened following President-elect Donald Trump’s nomination of Scott Bessent as Treasury Secretary.
New Zealand retail sales decline On the economic front, New Zealand's retail sales declined by 0.1% quarter-on-quarter in Q3, following a steeper 1.2% drop in the previous quarter. The country also reported a trade deficit of NZ$1.5 billion in October, an improvement from the NZ$1.7 billion deficit recorded in the same month last year.
NZ dollar increases from one-year lows
However, the New Zealand dollar remained under pressure due to expectations of policy easing by the Reserve Bank of New Zealand. The RBNZ is set to announce its monetary policy on Wednesday, with markets fully pricing in a 50 basis point reduction in the cash rate to 4.25%, in line with the October move, and a 25% chance of a 75 basis point cut.New Zealand retail sales decline On the economic front, New Zealand's retail sales declined by 0.1% quarter-on-quarter in Q3, following a steeper 1.2% drop in the previous quarter. The country also reported a trade deficit of NZ$1.5 billion in October, an improvement from the NZ$1.7 billion deficit recorded in the same month last year.