- New Zealand Manufacturing PMI drops in March
- US retail sales to fall in March
- NZD/USD trading quiet around the 0.6300 mark
New Zealand manufacturing declines
New Zealand’s week ended on a negative note as the Manufacturing PMI fell to 48.1, after a revised downward 51.7 for February, and well below the expected 51.0. A reading over 50.0 indicates expansion, while a reading under 50.0 indicates contraction. The manufacturing industry has been suffering due to poor economic conditions, supply chain problems and weak market reactions.
Inflation remains the Reserve Bank of New Zealand’s number one priority. The central bank is aggressive and has raised interest rates by 50 basis points last week, which blindsided the market. The benchmark rate of 5.25% is still high but inflation has remained stubbornly at 7.2%. The markets expect inflation to reach 7.5% during the first three months of the year. RBNZ governor Orr has a lot to say if inflation increases despite the constant rise in interest rate.
Today, the US will release its March retail sales numbers. The markets are expecting soft numbers. Headline retail…