The past 24 hours have been been volatile for the New Zealand. Yesterday, RBNZ Governor Alan Bollard announced a 50 basis point rate cut - double what the market had expected - and commented that economy was already likely in a recession with further easing necessary. The 200 point sell off that insued has since retraced nearly half of the decline with the US dollar’s rebound. However, this move may find some encouragement from the New Zealand economic calendar. Due at 22:45 GMT, the July retail sales report is expected to print a 0.3 percent contraction through the month. This is a modest forecast for an otherwise volatile indicator. However, after the second quarter reading dropped the most in 13 years and Governor Bollard said the economy was already steeped in a recession, this report could come out much worse than the official consensus suggests. If there is a substantial downside surprise, it could recharge the bear market and set NZDUSD back on trend.