Forex - NZD/USD edges higher on strong New Zealand retail sales

Published 08/14/2013, 02:54 AM
NZD/USD
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EUR/NZD
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Investing.com - The New Zealand dollar edged higher against its U.S. counterpart on Wednesday, supported by the release of positive retail sales data out of New Zealand, although Tuesday's U.S. retail sales report continued to support the greenback.

NZD/USD hit 0.7988 during late Asian trade, the session high; the pair subsequently consolidated at 0.7981, adding 0.21%.

The pair was likely to find support at 0.7884, the low of August 7 and resistance at 0.8058, the high of August 12.

Official data earlier showed that retail sales in New Zealand rose 1.7% in the second quarter, beating expectations for a 1.4% increase. The previous quarter's figure was revised up to a 0.9% gain from an previously estimated 0.5% rise.

Core retail sales, which exclude automobiles and gas stations, rose 2.3% in the last quarter, more than the expected 1.3% increase, after a 1% gain in the three months to March.

Meanwhile, the greenback remained supported after U.S. retail sales data on Tuesday reinforced the view that the economic recovery is strong enough for the Federal Reserve to begin phasing out its asset purchase program later this year.

The Commerce Department said that retail sales rose for the fourth successive month in July, rising 0.2%, while core retail sales, which exclude automobile sales, rose at the fastest pace in seven months, climbing 0.5%.

The kiwi was higher against the euro with EUR/NZD shedding 0.23%, to hit 1.6618.

Later in the day, the U.S. was to release data on produce price inflation.


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