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Dips To 0.6200 Supported As US Yields Fall

NZD

NZD/USD dips to just under 0.6200 post the US CPI print were supported in Thursday trade. We track in the 0.6235/40 region in early Friday dealing, with NZD up around 0.15% for the prior session. On Thursday the pair couldn't get above 0.6260.

  • NZD followed broadly USD sentiment, which initially spiked on the stubbornly above-estimate inflation data. However, topside momentum was kept in check as US yields began to reverse lower across the remainder of the US session.
  • Some dovish central bank speak also helped the yield move, with the 10yr finishing down 5bps to 3.97%.
  • The BBDXY finished marginally lower at 1224.50 (-0.11%). NZD/USD remains comfortably within recent ranges, with little net deviation from the 20-day EMA at 0.6242.
  • The local data calendar is empty today.

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