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Forex - NZD/USD edges higher after strong retail sales data

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Forexpros - The New Zealand dollar edged higher against its U.S. counterpart on Thursday, after better-than-expected retail sales data boosted expectations for a rate hike by the country's central bank.

NZD/USD hit 0.8313 during late Asian trade, the daily high; the pair subsequently consolidated at 0.8309, gaining 0.32%.

The pair was likely to find short-term support at 0.8211, Tuesday's low and short-term resistance at 0.8366, the high of the same day.

Statistics New Zealand said that retail sales adjusted for inflation rose 0.9% in the second quarter compared with a revised 1.1% gain in the three months to March. Analysts had expected retail sales to rise by 0.6%.

The report said the increase was due in large part to a 10% jump in electronic goods volumes, while motor vehicles and part sales increased 4.2% from the first quarter.

Core retail sales, which exclude automobile sales, rose 0.1%, surpassing expectations for a 0.7% gain.

But the kiwi's gains were limited amid concerns that Federal Reserve Chairman Ben Bernanke would not point to another round of bond-buying when he speaks Friday at the central bank's conference in Jackson Hole, Wyoming.

The kiwi was also higher against its Australian cousin, with AUD/NZD shedding 0.27% to hit 1.2606.

Later in the day, the U.S. was to publish government data on initial jobless claims.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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