A$ Dragged Down By NZD Slump, AUD/USD Dips Sub 0.6700 Have Been Supported

AUD/USD holds close to 0.6700 currently, down 0.20% for the session. The currency has had a tight range overall, (low of 0.6697/high of 0.6721). Dips in the AUD/USD sub 0.6700 have been supported over the past week. Wednesday's low was around 0.6690.

• More action has been evident in the AUD/NZD cross, which spiked to 1.0885 post this NZ Q1 CPI miss and has stayed elevated since.
• The market hasn't reacted a great deal to the RBA Review and press conferences from Treasurer Chalmers and RBA Governor Lowe. The near term policy outlook won't be altered in any case, as it will take time to implement the proposed changes.
• AU-US 2yr spreads sits within recent ranges, last around -103/104bps.
• On the data front, NAB Q1 business confidence edged down to -4, versus -1 prior.
• US equity futures are lower, weighing at the margin, while commodities mostly remain on the back foot. The active iron ore contract back to $116.50/ton.
• Looking ahead, tomorrow delivers April preliminary PMIs, but most focus is likely to rest on next week's Q1 CPI print.