United States (US) retail sales data became the focus of the market in yesterday's New York trading session with the latest reading for the July report recording a 'green' figure.
The July US retail sales rate rose to 1.0%, beating forecasts of 0.4%, showing a better figure than the previous month.
The core reading also recorded a good improvement compared to the forecast.
Additionally, the weekly report for US jobless benefits claims for last week recorded a lower number than in previous weeks.
The overall positive reading of the data yesterday has given support to the US dollar to show a surge in value at the beginning of the New York session.
However, the strengthening momentum failed to last long when the US dollar returned to display a decline towards the end of the session.
Analysts see the strengthening of the US dollar as temporary as expectations for an interest rate cut by the Federal Reserve (Fed) to be implemented in September remain high.
The positive reading of the US economic data is seen to help ease the anxiety hovering in the market in the previous week about the risk of a global recession.
The situation can also be seen in the recovery of the Wall Street stock market which managed to reach the latest 1-week high with all three major indices showing a convincing performance.
The attraction to safe-haven assets is expected to fade, including currencies such as the Yen and Swiss franc, and the recovering market situation will favor commodity currencies such as the Australian dollar.
But the New Zealand dollar is seen to be under pressure following yesterday's RBNZ central bank policy meeting which saw interest rate cuts announced.
