• NZD/USD edged higher on Monday kiwi dollar gained some traction after upbeat New Zealand retail sales data.
• Data on Monday showed retail sales in New Zealand rose a solid 0.5% in the June quarter amid signs of a long-awaited recovery in consumer spending..
• Sales rose across most industries, led by strong gains in electronics, supermarkets, groceries, and pharmaceuticals, the data showed.
• Investors are still expecting two more easings of the current cash rate of 3% to 2.5% by early next year.
• Immediate resistance is located at 0.5896(50%fib), any close above will push the pair towards 0.5911 (SMA 20).
• Support is seen at 0.5798(61.8%fib)and break below could take the pair towards 0.5782(Lower BB).
Recommendation: Good to sell around 0.5920 with stop loss of 0.6050 and target price of 0.5850
