New Zealand Dollar Tumbles on Disappointing Retail Sales Data
The New Zealand Dollar (NZD) retreated from its recent highs on Tuesday after Statistics New Zealand released softer-than-expected retail sales data for the fourth quarter of 2025.
Retail sales volumes fell by 0.8% quarter-on-quarter, missing market expectations of a 0.3% decline and marking the third consecutive quarterly contraction.
The disappointing figures reinforce concerns about domestic economic weakness, which has been weighed down by high interest rates and subdued consumer confidence.
Economists at ASB Bank noted that the data increases the likelihood of further easing by the Reserve Bank of New Zealand (RBNZ) in the coming months, with markets pricing in a 70% chance of another 25-basis-point cut at the next policy meeting in March.