Investing.com - The New Zealand dollar rose against its U.S. counterpart on Wednesday, recovering from earlier losses posted after the Reserve Bank of New Zealand said that the strength of the local currency was "unjustified and unsustainable."
NZD/USD hit 0.7422 during late Asian trade, the session high; the pair subsequently consolidated at 0.7394, gaining 0.45%.
The pair was likely to find support at 0.7318, Tuesday's low and a one-month low and resistance at 0.7502, the high of May 8.
In its biannual Financial Stability Report, the RBNZ earlier said that the kiwi was "above its sustainable level."
Commenting on the report, RBNZ Governor Graeme Wheeler said "we still think the exchange rate is unjustified and unsustainable and we'd like to see a movement downwards in the exchange rate."
Meanwhile, the greenback weakened broadly ahead of U.S. data on retail sales later in the day, after recent economic reports pointed to weakness in first quarter growth.
The kiwi was also higher against the euro, with EUR/NZD slipping 0.11% to 1.5215.
Later in the day, the U.S. was to publish data on retail sales.