NZD/USD bulls supported by strong NZ retail sales – Growth Aces

FXStreet (Barcelona) - The strong NZ retail sales cooled off rate cut expectations from the RBNZ and also support a long NZD/USD view, notes the Research Team at Growth Aces, who stay bullish on the pair targeting 0.7660 levels.

Key Quotes

“New Zealand retail sales volumes increased at the strongest pace in two and a half years in the fourth quarter. Sales volumes rose a seasonally adjusted 1.7% in the fourth quarter, against market expectations for a 1.3% rise, and an upwardly revised 1.6% rise in the previous quarter.”

“Core retail sales volumes, which exclude fuel and motor sales and servicing, rose 1.5%."

“The data was in line with other data pointing to solid economic growth but with little inflation pressure.”

“Retail sales data cooled expectations that the Reserve Bank of New Zealand might consider a rate cut, as other central banks have done recently to stimulate flagging activity.”

“Strong retail sales data supported our long NZD/USD position taken at 0.7340. We have raised the stop-loss level on this position to 0.7420.”

“Resistance: 0.7582 (high Jan 22), 0.7709 (high Jan 21), 0.7781 (high Jan 20)”

“Support: 0.7428 (hourly low Feb 16), 0.7412 (low Feb 13), 0.7405 (10-dma)”

“NZD/USD trading strategy: long at 0.7340, target 0.7660 stop-loss 0.7420”