Sign Up Log in

    Retail sales in New Zealand increase by 0.5% quarterly and 2.3% annually, showing modest growth

    by VT Markets
    /
    Aug 25, 2025
    In the second quarter of 2025, New Zealand’s retail sales rose by 0.5% compared to the previous quarter, exceeding the expected increase of 0.2%. Year-over-year, retail sales grew by 2.3%, up from just 0.7% last year. According to Stats NZ, most industries showed modest growth during this time. Out of 15 retail sectors, eight reported higher sales in June than in March after adjusting for price changes and seasonal factors.

    Minimal Impact on Exchange Rate

    Despite this news, the NZD/USD exchange rate has remained stable at around 0.5864. The latest retail sales figures from New Zealand provide mixed signals for traders. While the 0.5% growth outperformed expectations, it is slower than the previous quarter’s 0.8% increase. The market’s little reaction, with the NZD/USD holding steady, indicates that this data was not strong enough to shift overall sentiment. These results support the Reserve Bank of New Zealand’s decision to keep interest rates unchanged. With the inflation rate in Q2 2025 reported at 3.1%, just outside the bank’s target, this sign of consumer strength eases pressure on the RBNZ to consider lowering rates. This reinforces the prevailing view of “higher for longer” interest rates.

    Trading Implications

    For those trading derivatives, it appears that implied volatility may be overvalued. Given the lack of reaction in the currency to this important data, a strategy of selling option strangles on the NZD/USD could be wise in the coming weeks. This strategy would benefit if the currency stays within a certain range, which seems likely without a stronger catalyst. Reflecting on the prolonged battle against inflation from 2022 to 2024, it’s clear that central banks won’t change their policies based on unclear data. Therefore, betting on significant NZD weakness due to a slight slowdown seems premature. Traders should wait for the next inflation report or the RBNZ’s September statement for clearer direction. Create your live VT Markets account and start trading now.

    here to set up a live account on VT Markets now

    In This Article

    see more

    Back To Top
    server
    Click Click Click Click Click
    Follow us on

    Hello there 👋

    How can I help you?

    Chat with our team instantly

    Live Chat

    Start a live conversation through...

    • Telegram
      hold On hold
    • Coming Soon...

    Hello there 👋

    How can I help you?

    telegram

    Scan the QR code with your smartphone to start a chat with us, or click here.

    Don’t have the Telegram App or Desktop installed? Use Web Telegram instead.

    QR code