NZ Dollar Rallies, Struggles to Keep Gains

The New Zealand dollar gained today but had hard time keeping gains as macroeconomic reports from China, the biggest trading partner of the South Pacific nation, were somewhat disappointing. Today’s data from New Zealand showed growth of food prices, while a bunch of important economic reports will be released at the start of tomorrow’s trading session.
China’s economic indicators missed analysts’ expectations. Industrial production grew 8.7 percent in April from a year ago, slower than was expected — 8.9 percent. Annual growth of retail sale was at 11.9 percent last month, while economists were counting on a 12.2 percent increase — the same as in the previous month.
The New Zealand Food Price Index rose 0.6 percent in April from March when it fell 0.3 percent. The Reserve Bank of New Zealand will release its Financial Stability Report and central bank’s Governor Graeme Wheeler will speak tomorrow. It will be interesting to hear what policy makers are going to do after the interest rate hike.
NZD/USD rallied from 0.8618 to 0.8668 intraday but retreated to 0.8632 as of 20:24 GMT today. NZD/JPY traded at 88.26 following the rally from 88.00 to 88.51. EUR/NZD sank from 1.5956 to 1.5868, touching the daily low of 1.5826.

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