FX.co ★ NZ Dollar Gains on Strong Retail Sales Data

The New Zealand dollar climbed to approximately $0.591 on Friday, buoyed by retail sales data that surpassed expectations. For the first quarter of 2025, retail sales increased by 0.8%, well above the anticipated 0.1% rise. Conversely, on Thursday, the currency experienced a 0.7% decline as the government's constrained budget suggested potential for additional policy easing. In a recent fiscal outlook revision, New Zealand's government forecasted a reduced budget deficit of NZ$14.74 billion for the fiscal year ending June 2025, underscoring fiscal responsibility despite caution over weaker GDP growth and an anticipated "trade shock" due to the ongoing global trade war. The Reserve Bank of New Zealand is broadly anticipated to lower interest rates by another 25 basis points to 3.25% in the coming week. So far, the Kiwi dollar has appreciated by 0.5% this week, marking its first weekly gain in four weeks.