FxWirePro: NZD/USD extended gains as kiwi buoyed by NZ retail sales and business optimism

•  NZD/USD extended gains on Thursday  as  Bank of New Zealand rate cut and encouraging local data lifted sentiment.

• Data released by Statistics New Zealand on Thursday showed retail sales rose 1.9% quarter-on-quarter in Q3, up sharply from a 0.5% increase previously.

•Separate data showed, New Zealand's business confidence jumped in November to its highest level in 11 years, suggesting an economic recovery was underway, an ANZ Bank survey showed on Thursday.

• A net 67.1% of respondents now expect the economy to improve over the year ahead, up from 58.1% in October, while 53.1% see growth in their own businesses, compared with 44.6% previously

• The Reserve Bank of New Zealand cut rates on Wednesday but revealed that a pause was debated and signalled the easing cycle is likely over, with markets now pricing in a rate hike by December next year.

•  Immediate resistance is located at 0.5730(38.2%fib), any close above will push the pair towards 0.5751(Higher BB).

•  Support is seen at 0.5694(Daily low) and break below could take the pair towards 0.5666(38.2%fib).

 Recommendation: Good to buy  around 0.5700, with stop loss of 0.5650 and target price of 0.5760