NZD/USD an early score and 30 pip spike for the bulls on impressive retail sales recovery
|Currently, NZD/USD is trading at 0.7320, down -0.14% on the day, having posted a daily high at 0.7334 and low at 0.7305.
NZD/USD rallied in early Asia on the retail trade survey for the June 2017 quarter that arrived as +2.0% q/q. This was expected +0.7% q/q vs the prior +1.6% that was revised from +1.5%. This is a strong recovery compared to previous results and hence the reaction in the market, albeit within thin trade so far today. It is quite a packed day ahead for Asia today with the Chinese data dump in retail sales and IP. We also have Christopher Kent, the Assistant Governor (Economic) at the Reserve Bank of Australia, speaking shortly ahead of the RBA minutes tomorrow.
Currency strengths: RBNZ and RBA quick out of the blocks - ING
Meanwhile, analysts at Westpac the Kiwi to remain in consolidation around the 0.73 handle for the day but further out they argued that should the RBNZ remains firmly on hold, as they expect, and the US dollar rises on tighter Fed policy, then NZD/USD could fall as far as 0.69 by year end.
NZD/USD levels
0.7330 and 0.7370 (recent high) are the first resistance areas. 0.7420/25 ahead of the key 0.7440 and 0.7480 thereafter come as the next near-term resistance areas. 0.7520/25 double top highs are ahead of the 21st July high at 0.7557. In a continuation, 0.7744 were the April 2015 highs ahead of the opening highs for that year at 0.7889. Supports are 0.7305, 0.7250 and the 0.7205/06 June 22/21 lows; 0.7186 June 15 low; 0.7150 June 5 high; 0.7127 June 6 low and 0.7100.
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