Consolidation Continues, Pressured After ISM Data

NZD/USD print at $0.6165/70, that pair fell ~0.2% yesterday.

• The pair was pressured after meeting resistance above the 20-EMA yesterday. Firmer than forecast ISM Prices Paid underscored persistent US inflation which saw the greenback firm.
• NZD/USD fell ~0.6% from peak to trough, support was seen ahead of $0.6160 and losses marginally pared into the close.
• Technically we continue to consolidate below the 20-Day EMA in a narrow range. Bulls look to break the 20-Day EMA ($0.6188), bear first target a break of year to date lows at $0.6088.
• AUD/NZD firmed yesterday rising ~0.5%, the pair briefly dealt below $1.07 handle before firming through the session to sit at $1.0745/55.
• Cross asset wise; 10 Year US Treasury Yields rose 15bps, DXY rose ~0.4%. S&P500 was flat.
• The domestic data calendar is empty today. Trans-Tasman flows are in focus, with the RBA expected to hold the cash rate steady at 3.60% today. The focus is likely to be on the tone of the statement and indications of how the RBA's economic forecasts may have evolved. AUD/NZD flows may come to the fore.