The New Zealand dollar gained overnight and throughout European trading after New Zealand retail sales (adjusted for inflation) rose more than anticipated by 0.4 percent in during Q3, the first increase in seven quarters, suggesting that consumers are helping to lead the way to economic recovery in the nation. The data also led the markets to price in greater rate increases by the Reserve Bank of New Zealand down the road, as Credit Suisse overnight index swaps call for 107 basis points worth of hikes over the next 12 months, up from 96 basis points on Wednesday. However, the New Zealand dollar subsequently ended the day down more than 1 percent against the Japanese yen as broad-based risk aversion struck during US trading, taking FX carry trades lower.