The New Zealand dollar retreated from five-week highs as soft retail sales and housing data further reduced the already slender chance of a rise in domestic interest rates this week. The Australian dollar fared better to hold around $0.9330, after a run of strong domestic and Chinese economic news propelled it to a five-month peak of $0.9363 late on Monday.
The kiwi pulled back to $0.7283, from an offshore peak of $0.7346. Tuesday's data showed a disappointing 0.4 percent drop in July retail sales and a 2.8 percent fall in house sales in August. The NZ dollar was seen supported around $0.7250, with resistance at the early August high of $0.7356, ahead of $0.7400. The pullback also pushed the Aussie/kiwi pair to NZ$1.2797, near a two week high of NZ$1.2806 thanks to stronger Aussie fundamentals and better returns.
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