The earlier broad USD weakness elevated the....>

KIWI: The earlier broad USD weakness elevated the pair to highs of NZ$0.7365,

before fading. Next resistance is seen at NZ$0.7373/86 (50% NZ$0.7437-0.7308,

Feb21 high), a break of the NZ$0.74 handle opens NZ$0.7437 (Feb16 high). Support

at NZ$0.7308/07 (Intraday low, 50% NZ$0.7177-0.7437).

Main focus turns to the release of NZ Q4 Retail Sales tonight at 2145GMT.

Analysts at ANZ have pencilled in a 1.2% q/q lift in total sales volumes, which

would certainly be a jump from Q3's modest 0.2% q/q growth (although that, in

part, was impacted by an unwind in hospitality-related spending following some

key tourist events in Q2).

- Westpac expect the December quarter retail spending figures will show that New

Zealand households ended 2017 with a bang. We're forecasting a 1.4% gain in

spending over the quarter. Monthly spending figures have shown solid increases

in core spending categories in recent months.

- TD Securities expect volumes to lift by +2.0%/qtr. An outcome that strong is a

decent start to Dec qtr GDP, given it accounts for 61% of GDP(E).