New Zealand's quarterly retail sales report is due for release imminently, standing out on what is otherwise a light economic calendar today.

The upcoming release follows a pickup in retail sales in the first quarter (Q1). Today's data, however, is expected to be much slower, with rocketing fuel prices expected to weigh on the result. Because the report covers the second quarter, it offers a first formal read on how household spending held up as pump prices climbed during the period.

New Zealand's retail sales figures are compiled and published by Stats NZ on a quarterly basis. As a broad gauge of consumer spending, which is one of the largest components of the country's economic activity, the report is closely watched as an indicator of the pace of economic growth. Alongside the headline figure, the release includes both value and volume measures — the volume series strips out price effects — as well as industry-level detail spanning areas such as fuel, motor vehicles, supermarkets and hospitality. That breakdown lets observers distinguish genuine demand growth from inflation-driven turnover, and shows whether higher outlays at the pump have squeezed spending in other categories. Domestic data of this kind is also a regular reference point for observers of Reserve Bank of New Zealand (RBNZ) monetary policy, and the New Zealand dollar has historically been sensitive to surprises in national economic releases.

Source: ForexLive