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NZ Dollar Falls On Disappointing Retail Spending Figures

The New Zealand dollar weakened against other major currencies in the Asian session on Tuesday, after data showed that the nation's retail spending fell unexpectedly in June.

Data from Statistics New Zealand showed that the retail credit card spending in New Zealand was flat on month, missing forecasts for a gain of 0.8 percent following the 0.4 percent drop in the previous month.

Overall credit card spending in New Zealand was up a seasonally adjusted 0.1 percent on month in June. That was in line with expectations following the upwardly revised 0.1 percent decline in May.

Monday, the NZ dollar showed mixed trading against its major rivals. While the kiwi rose against the yen, it fell against the Australian dollar. Against the U.S. dollar and the euro, the kiwi held steady.

In the Asian trading, the NZ dollar fell to a 1-week low of 1.0537 against the Australian dollar and nearly a 3-week low of 0.7225 against the U.S. dollar, from yesterday's closing quotes of 1.0454 and 0.7275, respectively. If the kiwi extends its downtrend, it is likely to find support around 1.06 against the aussie, and 0.71 against the greenback.

Against the euro and the yen, the kiwi dropped to a 5-week low of 1.5758 and a 4-day low of 82.58 from yesterday's closing quotes of 1.5667 and 82.95, respectively. The kiwi may test support near 1.60 against the euro and 80.00 against the yen.

Looking ahead, Bank of England Chief Economist Andy Haldane is expected to participate in a panel discussion at the "Essentials of Numeracy" launch event, in London at 6:00 am ET.

At 7:00 am ET, Bank of England Deputy Governor Ben Broadbent is expected to speak at the Scottish Council for Development and Industry, in Aberdeen, Scotland.

At 8:00 am ET, European Central Bank Board member Benoit Coeure gives opening remarks at the FX Contact Group meeting in Frankfurt.

In the New York session, U.S. NFIB small business index, Canada housing starts and U.S. wholesale inventories, all for June, are slated for release.

At 12:20 pm ET, Federal Reserve Bank of Minneapolis President Neel Kashkari will participate in a Town Hall question-and-answer session moderated by Bremer Bank CEO Jeanne Crain in Minneapolis.

At 12:30 pm ET, Federal Reserve Governor Lael Brainard is expected to speak about normalizing central banks' balance sheets at a conference jointly sponsored by Columbia University and the Federal Reserve Bank of New York.

by RTTNews Staff Writer

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