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Kiwi drops despite positive data
AI Summary
- New Zealand dollar dropped despite positive economic data, falling against most major currencies
- Dollar index rose by 0.7% to 98.4 points after remarks by Federal Reserve Chairman Jerome Powell hinting at upcoming rate cut
- Nvidia, Dell, and Marvell Technology will report earnings this week, with US Personal Consumption Expenditures data due on Friday
The New Zealand dollar fell against most major currencies during Monday trading despite positive economic data.
Government data showed that New Zealand’s retail sales index rose by 0.5% in the second quarter, while analysts had expected a 0.1% increase.
Excluding volatile items such as energy and food, New Zealand’s core retail sales index rose by 0.7% in the second quarter, compared with expectations of a 0.3% decline.
As for trading, the New Zealand dollar fell against its US counterpart by 0.4% to 0.5848 as of 20:14 GMT.
Australian Dollar
The Australian dollar fell against its US counterpart by 0.2% to 0.648 as of 20:14 GMT.
US Dollar
The dollar index rose by 0.7% to 98.4 points as of 19:51 GMT, recording a high of 98.4 and a low of 97.7.
This came after remarks by Federal Reserve Chairman Jerome Powell at the Jackson Hole conference on Friday, where he hinted at an upcoming rate cut.
According to the CME FedWatch tool, markets are pricing in over an 86% chance that the Fed will cut rates by 25 basis points at the September meeting.
Later this week, Nvidia will report earnings after Wednesday’s close, followed by results from Dell and Marvell Technology.
Also due on Friday are US Personal Consumption Expenditures (PCE) data, the Fed’s preferred inflation gauge.
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