NZD/USD Holds Near 0.5850 as Strong Retail Sales Fail to Spark Rally

NZD/USD stabilized in a tight range near 0.5850-0.5900 through May 21-22 despite stronger-than-expected New Zealand retail sales. The pair initially rose after May 13 RBNZ survey data showed 1-year inflation expectations surging to 3.41% and 2-year expectations edging to 2.53%, but reversed lower following the May 15 manufacturing PMI drop to 50.5 and new orders contracting to 48.2. Subsequent moves were shaped by weak Chinese industrial production and retail sales, fading US-Iran optimism, robust US JOLTS data, and the PBOC’s decision to leave lending rates unchanged, keeping the kiwi capped below key resistance.