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New Zealand Household Purchasing Power is Declining

8/9/2022 1:42 PM

The NZD/USD pair is actively correcting around ​​0.6281. However, it cannot yet change the trend to an upward one against the backdrop of poor macroeconomic data.

Statistics New Zealand (Stats NZ) released July data on e-card retail sales today, which declined by 11.0M New Zealand dollars MoM, down by 0.2%. The largest increase in spending was recorded in the category of food and beverages, where the value increased by 2.2% or 52.0M New Zealand dollars, while analysts noted a decrease in the number of transactions for the purchase of fuel by 39.0M New Zealand dollars or 6.1%. As a result, in annual terms, the volume of retail sales using electronic cards fell by 0.5% or by 31.0M New Zealand dollars. That is, the purchasing power of households is still declining, preventing the New Zealand economy from recovering.

The American currency continues to correct, consolidating above 106.000 in the USD Index. Investors are in no hurry to open new positions in anticipation of tomorrow's July statistics on consumer prices publication. Although, since the beginning of the year, analysts have been able to predict the dynamics of the inflation rate only once accurately, now they insist on reducing the rate to 8.7% from 9.1%, although there are still no real prerequisites for this.

The trading instrument is moving within the global downtrend, correcting within the local sideways corridor. Technical indicators keep a buy signal: fast EMAs on the Alligator indicator are above the signal line, and the AO oscillator histogram forms multidirectional bars in the buy zone.

Resistance levels: 0.6327, 0.6536. | Support levels: 0.6213, 0.6061.

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