New Zealand Retail Sales beats estimates, kiwi steady

New Zealand Retail Sales volumes rose a seasonally adjusted 2.5 percent in the first quarter, data from Statistics New Zealand showed on Monday, putting sales 6.8 percent higher on the year. 

• New-Zealand (Q1) retail sales (QoQ) actual: 2.5% vs -2.7% previous.

The data is a key input for Gross Domestic Product so is a key event in an otherwise quiet start to the week in holiday thin markets. 

Nevertheless, the kiwi has not budged on the release and trades at 0.7173 in a tight 0.7161 and 0.7179 range for  the day so far, 

All in all, there is not much room for the Reserve Bank of New Zealand to be much more dovish and on such data, tapering could start to become a theme which is bullish for the bird.

NZIER’s Shadow Board sees stronger case for tightening

Meanwhile, Shadow Board members are still considering current monetary settings as appropriate for the upcoming May meeting, but the latest publication of the Institute's research states, ''attention turns to a tightening in monetary policy over the coming year. In the near term, members pointed to some uncertainty over how sustainable the recovery will be particularly in light of continued border restrictions. Hence members saw a cautious approach as justified for the upcoming meeting.''

Analysts at ANZ bank said ''they’ll have to acknowledge the better economy, but with so much uncertainty, they will likely play it with a straight bat, and that should (hopefully) leave markets fairly unperturbed.'' 

About NZ Retail Sales

The retail Sales released by the Statistics New Zealand measures the total receipts of retail stores. Quarterly percent changes reflect the rate of changes of such sales. Changes in Retail Sales are widely followed as an indicator of consumer spending. A high reading is seen as positive (or bullish) for the NZD, while a low reading is seen as negative (or bearish).