NZD/USD Pares Losses During the Asian Trade Amid Mixed Data

NZD-USD has consolidated above 0.6250 in Asian trading, after recovering from the lows of 0.6196 traded in NY on Wednesday. The move off the lows largely tracked the recovery seen in AUD and EUR but gains have been capped at 0.6285 with further resistance eyed at 0.6300/10. Traders still eye further downside risk for a move to 0.6150/60. Still lingering as a negative for the Kiwi is overall weak dairy prices, which mirrors the broader weakness in commodities that has undermined the AUD. Data out of NZ today has been mixed with the electronic card data for June falling by -0.4% with all retail industries dropping -1.0% and the first drop for the all-retail figures since January. Core retail spending which excluded automotive industries and fuel dropped -1.2%, ending a string of gains the prior three months and was the largest monthly fall in the core retail figures since October 2007. However, data released today by the REINZ shows that NZ June median house prices rose +0.7% m/m and were flat year-on-year in a further sign that real estate is stabilizing. House sales fell -4% m/m but rose +40.3% over a year ago.