SYDNEY (Reuters) - The New Zealand dollar slipped on Monday after data showing slower-than-expected retail sales cast a shadow over the pace of broader economic growth, while the Australian currency hovered close to key chart resistance.
New Zealand's first-quarter retail sales volume rose 3 percent, the weakest pace in more than five years and slower than the previous quarter's 5.4 percent jump.
Sales were up just 0.1 percent on a quarterly basis, much weaker than the roughly 1 percent rise expected by economists.
The disappointing data pointed to some speed bumps in the economy, and sent the New Zealand dollar <NZD=D4> lower by almost half a U.S. cent to $0.6899.
The kiwi fell 0.7 percent last week for its fifth straight weekly loss but was still above a recent five-month trough of $0.6851.
"It was a soft start to the year for retail spending," said Westpac economist Satish Ranchhod in a note to clients. "This signals downside risk to our Q1 GDP forecast and chimes with other signs that the economy is slowing."
First quarter gross domestic product data is due June 21.
"We expect that household spending growth will remain modest over the coming year as the housing market cools in response to government policy changes. Population growth is also expected to ease back gradually over the next few years," Ranchhod added.
Separate data out on Monday showed annual net migration eased as more foreigners left the country.
In Australia, the Aussie <AUD=D4> held at $0.7516, remaining largely in a holding pattern it has found itself in lately. The currency was nudging towards chart resistance of $0.7540, a breach above could take it beyond $0.7600.
The Aussie was helped by news that China and the United States had put a looming trade war "on hold" after agreeing to drop their tariff threats while they work on a wider trade agreement.
Investors had been worried that a full-blown trade war between the world's biggest economies could derail global growth and hurt export-heavy nations such as Australia.
The Aussie has been on a downward trend since late January, first on expectations of faster U.S. rate rises and then on the tariff tensions. It slipped 0.4 percent last week and is so far down nearly 4 percent this year.
New Zealand government bonds <0#NZTSY=> gained, sending yields about 2-3 basis points lower across the curve.
Australian government bond futures rose, with the three-year bond contract <YTTc1> up 2 ticks at 97.750. The 10-year contract <YTCc1> climbed 3 ticks to 97.1150.
(Editing by Shri Navaratnam)
