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Surprise Retail Sales Contraction Provokes Negligible Response

NZD

Kiwi crosses knee-jerked lower in response to a surprise contraction in New Zealand's retail sales.

  • The volume of retail sales adjusted for inflation and seasonal effects entered the second consecutive quarter of contraction as it fell 2.3% Q/Q in the three months through end-June. The previous reading was revised to -0.9% from -0.5%. Bloomberg consensus was looking for a 1.7% increase in Q2.
  • The modest reaction moves in kiwi crosses have been promptly unwound, 2-Year NZ swaps have been unfazed.

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