Anna 
In today’s trading sessions spanning Europe and Asia, the New Zealand dollar (NZD) exhibited a significant upswing against the US dollar (USD), reaching a pinnacle near 0.6060. This unforeseen surge was predominantly propelled by New Zealand’s third-quarter retail sales data for 2023, which defied expectations by remaining unexpectedly stable, countering forecasts of a -0.8% downturn. Particularly noteworthy is the 1% increase in figures, excluding auto sales, sharply contrasting with the projected -1.5%.
Adding to the positive market sentiment, recent measures in China aimed at supporting property developers, such as Country Garden Holdings Co, have instilled confidence in the markets. This development holds particular significance for the NZD, given New Zealand’s robust trade ties with China.
Concurrently, the USD displayed a mixed sentiment ahead of the imminent release of S&P Global PMI data. Investors grappled with potential policy changes by the Federal Reserve, including the prospect of interest rate cuts in May 2024. Despite an uptick in Treasury yields following the Thanksgiving holiday, the Federal Open Market Committee’s (FOMC) recent hawkish stance, coupled with robust US labor and consumer sentiment reports, is mitigating bearish speculations on the USD.
