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NZD/USD edges higher toward 0.5900 as the US dollar weakens
The move follows US Retail Sales slipping 0.6% month over month in July and the University of Michigan Consumer Sentiment Index falling to 51 in August.
The New Zealand dollar strengthened versus the US dollar, with NZD/USD rising 0.75% on Friday and trading near 0.5895, as it nears the 0.5900 level, according to FXStreet.
FXStreet cited weakness in the US dollar linked to softer US data, including US Retail Sales falling 0.6% month over month in July, reversing a 0.2% increase in June and missing expectations for a 0.1% rise. The outlet also pointed to a deterioration in sentiment, with the University of Michigan Consumer Sentiment Index dropping to 51 in August from 55.2 in July, along with lower Current Conditions and Expectations subindices.
On the New Zealand side, FXStreet said the Kiwi gained support from market expectations that the Reserve Bank of New Zealand will tighten policy, after the central bank signaled a need to withdraw some support. Those expectations are tempered by signs of slowing activity, including the Business NZ Performance of Manufacturing Index falling to 54.3 in July from a revised 60.1 in June.
Technically, FXStreet noted NZD/USD traded around 0.5894 on the one-hour chart, maintaining a bullish near term bias while holding above the 100-period and 200-period simple moving averages at about 0.5868 and 0.