NZD/USD marked two-week downtrend with Friday’s mild losses. Reflation, tapering concerns returned to the table on strong PMIs and Fedspeak. Today’s New Zealand Retail Sales can help forecast GDP, become the key for Wednesday’s RBNZ. NZD/USD keeps Friday’s sober mood, heavy around 0.7170 recently, amid the early Monday morning in Asia. The kiwi pair dropped the previous day as fears of the Fed’s policy adjustments favored the US dollar to portrays a corrective pullback from early January levels. Will strong Retail Sales trigger RBNZ moves? Friday’s upbeat PMIs from the US added to the Federal Reserve (Fed) official’s worries and the concerns over the tapering also mount for the Reserve Bank of New Zealand (RBNZ) board members. However, today’s New Zealand (NZ) Retail Sales for the first quarter (Q1) could save Governor Adrian Orr and the company if matching the downbeat forecast of -4.4% QoQ, versus -2.7% prior, as well as +1.9% for YoY compared to +4.8% previous readouts. Record activity jump in the US pushed Atlanta Federal Reserve President Raphael Bostic and Philadelphia Fed President Patrick Harker to join the line of Dallas Federal Reserve Bank President Robert Kaplan while citing inflation fears and the need to act. Worries surrounding the Fed action joined the slump in cryptocurrencies to weigh on Antipodeans and commodities, except for gold that benefited from safe-haven bids. While the Fed policymakers have recently been cautious on their approach and try to defend the current status quo, a similar path could be expected for the RBNZ policymakers should today’s Retail Sales offer a positive surprise. Though, RBNZ Governor Orr may wait for the Fed and cite recently mixed data at home to defend the New Zealand central bank’s inaction. Other than Retail Sales, New Zealand’s recent jitters with China, due to joining the lines of the UK and the US, as well as the recently witnessed airplane hijacking in Belarus, may also negatively affect the market sentiment. Alternatively, Auckland’s lead to tame the coronavirus (COVID-19) seem to safeguard the NZD/USD bulls. Amid these plays, Wall Street closed mixed on Friday and the US Treasury yields were also sluggish. Looking forward, NZD/USD traders will keep their eyes on today’s NZ Retail Sales (Q1) for immediate direction. However, major attention will be given to Wednesday’s RBNZ meeting. Technical analysis NZD/USD forms a bearish head-and-shoulders chart pattern that needs confirmation by a downside break of 0.7140 to direct sellers, theoretically, towards the sub-0.7000 region. Meanwhile, 0.7270 and 0.7310 restrict the kiwi pair’s short-term upside. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street Expert score 5 Etoro - Best For Beginner & Experts0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 5 Read Review Open My Free Account Your capital is at risk. FXStreet News share Read Next When is the New Zealand Q1 Retail Sales and how could it affect NZD/USD? FX Street 5 months NZD/USD marked two-week downtrend with Friday's mild losses. Reflation, tapering concerns returned to the table on strong PMIs and Fedspeak. Today's New Zealand Retail Sales can help forecast GDP, become the key for Wednesday's RBNZ. NZD/USD keeps Friday's sober mood, heavy around 0.7170 recently, amid the early Monday morning in Asia. The kiwi pair dropped the previous day as fears of the Fed's policy adjustments favored the US dollar to portrays a corrective pullback from early January levels. Will strong Retail Sales trigger RBNZ moves? Friday's upbeat PMIs from the US added to the Federal Reserve (Fed) official's worries and… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.