Slides After New Zealand Posts Healthy Recovery In Retail Sales

The bullish hammer candlestick pattern is poised to fail, as AUD/NZD sold off in early trade after the release of New Zealand's quarterly retail sales survey. The report revealed a strong, 28.0% Q/Q surge in headline metric (exp. +19.0%), which pushed NZD to the top of G10 scoreboard, even as Stats NZ noted that "this quarter's rise (...) does not make up for the historic fall of 15% in the COVID-19-affected June 2020 quarter". The rebound occurred as New Zealand lifted its strict lockdown measures.

• Also in NZ: Environment Min Parker announced that the gov't will fast-track building projects to speed up the delivery of around 2,000 construction jobs, while PM Ardern pushed back against suggestions that she would like to introduce a land tax or capital gains tax.
• There was positive news in Australia too - the states of Victoria and South Australia relaxed their lockdown measures, while NSW re-opened its border with Victoria.
• The pair deals at NZ$1.0522, 18 pips worse off, still above Friday's worst levels. A break below NZ$1.0512, which cushioned losses last Friday, would turn focus to trendline support at NZ$1.0505, followed by Apr 21 low of NZ$1.0484. On the flip side, bulls need to retake Nov 13 high of NZ$1.0631 to get some reprieve.