New Zealand consumer mood at nine-year peak
NZD/USD to refresh this year’s high? Why not? Especially keeping in mind extremely positive data from New Zealand. Another fact that supports another rate hike from RBNZ occurred on Monday, as a report from Westpac Banking Corporation showed consumer sentiment rocketed to the highest level in nine years on the back of economic strengthening and hawkish comments from the central bank.
A gauge of consumer mood advanced to 121.7 this month, accelerating form 120.1 in the December survey, soaring to the highest level since credit-fuelled economic growth in 2005 and moving further away from the 100 threshold that indicates optimism. A net 35% of respondents consider the economy will improve in the year ahead, up from 27.8% in the previous report and hitting the third-highest since records began. Consumer mood is on a steady rise as domestic economy is running close to its full capacity, with export commodity prices hovering around record high, while the Canterbury rebuild and booming housing market are adding a significant amount of growth to the key construction sector. The only worrying sign is consumers’ cautiousness about further spending, as households’ spending is expected to remain a passenger as other sectors of the economy will drive the economy to prosperity.
Source: Dukascopy
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