NZD/USD pushed lower for a second consecutive session today, weighed by stronger than expected retail sales data.
The pair attempted to turn higher in the Asian session but resistance at 0.7311 held the pair lower. The horizontal level has been well respected on a weekly chart and had carried confluence with the 61.8% Fibonacci level measured from this week’s high to yesterday’s low.
The pair declined roughly 70 points from the level and is currently seen consolidating near support at 0.7238 which marks the December 2016 spike high.
Retail sales in the United States came in ahead of expectations in July which was the first time since January. Sales were reported to increase 0.6% versus an expected gain of 0.3%.
The dollar gained broadly as a result of the report and leads the gainer’s list among the majors. The Swiss franc was the weakest performer followed by the New Zealand dollar.
Global Dairy Trade figures fell 0.4% at the latest auction after declining 1.6% in the prior reading. The data did not have a significant impact on the exchange rate.
A declining trendline that connects the July 31st high with a high posted on August 4th has held the exchange rate lower. The trendline remains resistance in the event of a recovery attempt. Near the trendline a horizontal level is found at 0.7279.