Dollar Pressured after Weak US Retail Sales

The almighty dollar fell lower overnight and during today’s Asian trade session. The U.S. currency was soft against the safe have Japanese yen and other currencies after dismal U.S. retail sales data crossed the wires. This weaker than expected economic data reinforced trader worries that that the Federal Reserve Bank might pause their rate hike cycle for the entire year.

Traders are also watching the ongoing trade talks in Beijing as the United States and China hope to reach a new trade deal.

Retail sales, in the United States, posted their biggest loss since September 2009. This data was released overnight during the North American trade session.  This soft data is a sign of weakness within the consumer sector. This sector is more than two thirds of the U.S. economy.

The dollar index, which measures the dollar in a basket against six other currencies including the euro, was a tad higher this morning as it traded at 97.07. The index, overnight, lost 0.12 percent after the sales data was released.

In the benchmark USD/JPY index, the greenback was down 0.5 percent overnight and down another 0.2 percent during today’s Asian trade session. This market was last at 110.26 yen. The EUR/JPY Forex market was down 0.24 percent to trade at 124.48 yen. Yesterday, this market was up 0.2 percent.

The New Zealand Dollar gains after the RBNZ Releases its Monetary Policy Decision

The benchmark AUD/USD market reversed early gains to lose 0.3 percent to trade at $0.7085. The NZD/USD Forex market also reversed early gains to slip 0.3 percent to trade at $0.6816. The Kiwi is still set to see a weekly gain.

Earlier this week, the Reserve Bank of New Zealand was less dovish with their monetary policy. The markets had expected a more hawkish tone. This led to traders buying the New Zealand currency over the curse of the week.