NZD/USD holds positive ground near 0.5900 as New Zealand Retail Sales beat expectations

• NZD/USD edges higher to around 0.5900 in Friday's early Asian session.
• New Zealand Retail Sales beat expectations in Q1. 
• A stronger US S&P Global PMI might cap the pair's upside. 

The NZD/USD pair posts modest gains near 0.5900 during the early Asian session onn Thursday. The upbeat New Zealand Retail Sales data provide some support to the Kiwi against the US Dollar (USD). Traders will keep an eye on the speeches from the Federal Reserve (Fed) officials later on Friday, including Alberto Musalem, Jeff Schmid and Lisa Cook. 

New Zealand Retail Sales were stronger than expected in the first quarter (Q1) this year as interest-rate cuts triggered improved consumer demand and confidence. The country's Retail Sales rose 0.8% QoQ in Q1 from the previous reading of 0.9%, according to the official data published by Statistics New Zealand on Friday.  The upbeat New Zealand economic data underpin the China-proxy Kiwi, as China is a major trading partner of New Zealand.

On the other hand, the stronger US S&P Global Purchasing Managers Indices (PMIs) might boost the Greenback and drag the pair lower. Fed Governor Christopher Waller said that markets are monitoring fiscal policy. Waller further stated that if tariffs are close to 10%, the economy would be in good shape for H2, and the Fed could be in a position to cut later in the year. Markets have priced in nearly a 71% chance that the Fed would keep its interest rates steady through its next two meetings, according to the CME FedWatch tool.