Global macro overview for 12/08/2016:
The Statistics New Zealand agency released the retail sales data for the second quarter and it surprised market participants. Through the March - June quarter the volume of retail sales rose a seasonally adjusted 2.3%. Market participants expected an increase of only 1.0%, just as per prior three months, but the number released was far ahead of their expectations.The biggest gain in the retail sector of New Zealand economy is recorded in hardware, building and garden supplies (5%), motor vehicle and spare parts (2%), pharmaceutical and other store-based retailers (5%) and food and beverages (3.3%). In conclusion, the pre-summer months in New Zealand were very good in terms of sales, so market participants can't wait for the summer period release, especially after the recent interest rate cut by RBNZ. Will the recent RBNZ actions help to devaluate New Zealand Dollar? It remains the most important question for now.
Let's now take a look at the NZD/USD technical picture in the daily time frame. Clear Doji candle can be seen after the market failed to break out higher above the 0.7323 resistance and it clearly suggests some weakness coming to this market. The price is still trading above the 100 and 200 daily moving average, but in case of any further downside acceleration, the next support can be seen at the level of 0.7054.
