Soft US retail sales data reduced expectations for a Federal Reserve rate hike, lifting the New Zealand Dollar to mid-0.5900s levels.
The New Zealand Dollar (NZD) traded near 0.5943 against the US Dollar (USD), holding its highest levels since early June. The pair remained little changed on the day but extended a two-week rebound as a softer US retail sales report dampened expectations for a Federal Reserve rate hike in September, weakening the USD.
New Zealand’s trade data showed exports at NZ$8.09 billion, leaving a slim monthly surplus, while the annual deficit hovered near NZ$3.74 billion. However, the data had minimal impact on price action, with focus shifting to US monetary policy and technical levels.
Technical analysis indicated a bullish bias, with NZD/USD holding above its 20-period and 100-period Simple Moving Averages. Resistance emerged at 0.5947, while support was seen at 0.5938, with the Relative Strength Index signaling firm but stretched upside momentum.