Kiwi falls despite positive retail sales data, likely to fall further

• Pair is currently trading at $0.6610 levels.
   
• It made intraday high at $0.6675 and low at $0.6604 levels.
   
• Sales volumes rose 1.2% quarter-on-quarter in the October-December period, according to Statistics New Zealand data released Tuesday.
   
• Core retail sales - which excludes the volatile automotive industry - was up 1.4% in the final quarter.
   
• Inflation expectations slipped to 22 year low as business managers expect inflation in New Zealand of 1.63% annually over the next two years, according to the Reserve Bank of New Zealand's quarterly inflation expectations survey.
   
• Intraday bias remains bearish till the time pair holds resistance at $0.6750 levels.
   
• A daily close above $0.6750 will turn the bias bullish again.
   
• On the other side, a break of $0.6600 will take the pair toward key support level at $0.6418 and $0.6347 thereafter.

We prefer to take short position in NZD/USD around $0.6600, stop loss $0.6750 and target $0.6347 levels.