Health Service Revamp, Community Case Of Covid, CPI Data Take Focus

Although Tuesday's Asia-Pac hours saw NZD/USD show above $0.7200 for the first time in a month, the rate gave up its initial gains and slid into negative territory. The kiwi lost ground alongside its commodity-tied peers as U.S. House panel cleared a bill that would allow the Justice Dept to open antitrust probes against OPEC members. NZD/USD wrapped up charting a shooting star candlestick pattern, a signal of an imminent bearish reversal, to be confirmed by today's price action.

• NZ Health Min Little announced an overhaul of the national healthcare system, which involves abolishing all 20 District Health Boards and setting up a single health organisation.
• Covid-19 Min Hipkins downplayed the odds of New Zealand's latest community case disrupting the trans-Tasman travel bubble. The new case was a vaccinated cleaner of planes arriving from high-risk countries in Auckland. The person contracted the UK strain of the virus, likely from a plane passenger. Their household contacts all returned negative tests.
• Interest.co.nz circulated an opinion piece flagging "confusion and uncertainty about critical details which are still missing from the government's [housing policy] package."
• New Zealand's Q1 CPI data headline the local docket today. Inflation is expected to accelerate and register at +0.8% Q/Q and +1.5% Y/Y.
• Looking further afield, credit card spending comes out on Friday.
• With the rate trading at $0.7171, just shy of neutral levels, bears are on the lookout for a confirmation that selling pressure is mounting. One such hint has been provided by the 50-DMA, which crossed below the 100-DMA. A fall through Apr 19 low of $0.7122 would open up Apr 7 low of $0.6997. On the topside, a break above Tuesday's high of $0.7230 would bring Mar 18 high of $0.7269 into focus.