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NZD/USD off weekly highs, near 0.7530

FXStreet (Mumbai) - The New Zealand prolongs its upwards trajectory against the American dollar in the mid-Asian session, with NZD/USD extending beyond 0.75 barrier. The Kiwi rallied in early Asia after the NZ retail sales unexpectedly came in much better than market forecasts with the Kiwis splurging big time last quarter.

NZD/USD retraces from 0.7564

Currently, the NZD/USD pair trades higher by 0.55% at 0.7529, retreating from fresh one week highs of 0.7564. NZD/USD extends its upbeat momentum for the third day in a row supported by impressive retail sales figures from the Kiwi nation.

New Zealand retail sales volumes rose a record 2.7% in the March quarter, Statistics New Zealand said on Thursday, coming in much stronger than the market forecast of a 1.6% rise.

Moreover, persistent broad USD weakness following a big miss on the US retail spending numbers keeps the NZD/USD pair underpinned.

Meanwhile, Philip Borkin, Senior Economist at ANZ, notes, ”Retail spending volumes were exceptionally strong in Q1, although this in part reflects greater than expected retail price deflation. Annual nominal spending growth is still broadly consistent with household income growth."

"Nevertheless, it is clear that support from petrol price falls, a solid labour market and the boost from the tourism sector have all proved to be a boon for retail spending to start the year. The retail sector will make a strong contribution to Q1 GDP growth."

Later today, we have US PPI and weekly jobless claims to report in the US session while the EUR calendar is a data-dry one as Europe is close on a national holiday.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7576 levels and above which it could extend gains to 0.7600 levels. To the downside immediate support might be located at 0.7477 levels below that at 0.7457 levels.

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