The New Zealand dollar fell against the Australian dollar on Thursday after stronger-than-expected November retail sales across the Tasman added to the view that consumer spending is picking up and fuelling Aussie growth.
The kiwi declined to A91.37c as at 5pm in Wellington from A91.64c at 8am. It rose to US71.88c from 71.64c.
The Australian dollar climbed after Australian Bureau of Statistics figures showed retail sales rose 1.2 per cent in November from October versus an expected 0.4 per cent.
It was the steepest gain since 2013 and was driven by sales and the release of the iPhone X.
"The much stronger than expected surge in retail sales values in November, alongside the decent rise in October, suggests that real consumption growth bounced back in the fourth quarter," said Capital Economics in a note.
The kiwi was "leading the way, quite strong above US72c and then the Aussie retail sales were stronger than expected and we have seen selling of kiwi and buying of Aussie since then. That also knocked it back to just under US72c but it is still looking reasonably perky," said Tim Kelleher, head of institutional foreign exchange sales at ASB Bank.
The currency is "grinding away" but has strong resistance at US72.50c, he said.
Looking ahead, markets will be interested in the US producer price index overnight and the US consumer price index on Friday but "most people are looking at the Chinese talk on Treasuries," Mr Kelleher said.
The kiwi rose to 4.6838 Chinese yuan from 4.6713 yuan Wednesday. It traded at 80.29 yen from 80.43 yen as the Japanese currency continued to move higher after the Bank of Japan trimmed its purchases of Japanese government bonds. The NZ dollar was at 60.14 euro cents from 59.97 cents and increased to 53.22 British pence from 52.92 pence.