Trims August's Losses On Tuesday, Retail Sales On Tap

NZD/USD prints at $0.5945/50, the pair rose ~0.3% yesterday.

• Kiwi was the strongest performer in the G-10 space at the margins yesterday, the pair trimmed some of August's losses and sits ~0.8% above Monday's YTD lows.
• There was no specific headline driver for the outperformance, NZD/USD firmed with equities through the European session. Resistance came in above $0.5970, the pair found support at $0.5930 in the NY session as US equities were pressured and firmed into the close.
• Despite yesterday's rally we remain in a strong downtrend, bears look to break the low from 21 Aug ($0.5897) which opens $0.5841 (low from 10 Nov 22) and $0.5775, a Fibonacci projection. Bulls look to regain the $0.60 handle to target the 20-Day EMA ($0.6039).
• AUD/NZD sits a touch below the $1.08 handle however narrow ranges continue to persist with little follow through on moves.
• RBNZ's Chief Economist noted that they are mindful of the NZD's drop, noting its a reflection of rate differentials and risk aversion.
• On tap today we have Q2 Retail Sales ex Inflation. A fall of 0.4% Q/Q is expected.