New Zealand dollar remains on the back foot

The New Zealand dollar remained on the back foot on Friday, as increased risk aversion saw investors flee to the relative safe havens of the greenback and the yen.

• Weak retail sales from New Zealand late last week reinforced expectations that the Reserve Bank of New Zealand will cut rates again in the coming months.
  
• This is likely to continue to weigh on the kiwi, particularly given the ongoing gloomy economic outlook for the domestic economy.
  
• Stock markets across Asia fell overnight, despite better Consumer Confidence data from Japan, as uncertainty about a recovery in the world economy dissuade s investors from buying riskier assets.