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NZD/USD supported after positive NZ retail sales data

nzd2New Zealand dollar gained positions against its US counterpart on Wednesday, following the release of optimistic retail sales report out of New Zealand, while the greenback was still supported after yesterdays US retail sales data.

NZD/USD reached its highest point at 0.7986 during the early phase of Asian trade, after which consolidation followed at 0.7981, up by 0.21% daily. Supported was likely to be found at August 7th low, 0.7884, while resistance was to be encountered at August 12th high, 0.8058.

Earlier today a report said that retail sales in New Zealand, without taking into account the rate of inflation, increased by 1.7% during the second quarter of the year compared to the first quarter, outpacing preliminary estimates of a 1.5% increase, while the result during Q1 was revised up to a 0.9% gain from a 0.5% gain in sales previously. Core retail sales, excluding volatile elements such as automobile and gas sales, rose by 2.3% during the second quarter, again outstripping forecasts of a 1.3% gain.

Meanwhile, the greenback was continuously supported after on Tuesday the Department of Commerce said that retail sales in the United States rose by 0.2% in July, slowing down in comparison with June’s 0.6% increase, which was a revision up from 0.4% previously. Analysts had projected an increase by 0.3%. Core retail sales, which exclude automobile sales, rose by 0.5% in July compared to June, exceeding expectations of a 0.4% increase, after the revised up sales figure in June, when they increased a mere 0.1%. This data implied a certain dose of optimism over the rate at which economic recovery in the states was going, but it was not clear whether it would be sufficient for the Federal Reserve Bank to start paring back its asset purchases.

Elsewhere, the kiwi, as New Zealand dollar is also known, was trading higher against the Australian currency, as AUD/NZD cross shed 0.38% to 1.1404 at 7:20 GMT.

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