The release of NZ retail sales data for Q4.....>

KIWI: The release of NZ retail sales data for Q4 this morning has been somewhat

overshadowed by spiralling concerns over the Covid-19 spread. Although the

pathogen has not yet reached the shores of NZ, soaring numbers of cases in Italy

or South Korea have dented risk sentiment. China's Hubei province's warning that

Covid-19's incubation period may exceed 14 days & joint communique from G20

FinMins pointing to risks from the epidemic haven't helped either. NZD/USD has

turned its tail and last sits at $0.6323, 26 pips worse off on the day.

- The pair's early drop comes after it managed to finish in the green Friday.

Despite edging lower in the Asia-Pac session, a round of disappointing U.S.

flash PMIs allowed it to stage a rebound & remain afloat into the close.

- For the record, NZ retail sales (ex inflation) slowed to +0.7% Q/Q vs.

expectations of +0.8%. The Q3 reading was revised to +1.7% from +1.6%.

- Bears keep an eye on Friday's trough at $0.6303. A break here would open the

Oct 16 low of $0.6241. Bulls look to retake $0.6357, Friday's high.

- NZ credit card spending data will be published later today. Trade balance &

ANZ biz. conf. hit on Thursday, with ANZ cons. conf. due Friday.