One of the most interesting stories in the FX market over the past few weeks has been the New Zealand dollar.
The currency has been on a one way downtrend since last week, having lost close to 400 pips in a matter of days. Economic data has taken a turn for the worst with retail sales dropping 1.2 percent in March. The drop in visitor arrivals and credit card spending should have been the first clue that consumer spending has been weak. If producer prices, which are due for release this evening, are also soft, the Reserve Bank of New Zealand could actually consider lowering interest rates. Canadian manufacturing shipments fell short of expectations as well, but the sell-off in the US dollar has offset any kiwi or Cad bearishness and has instead pushed all of the commodity producing currencies higher.
