NZD Outperforming Marginally Amid Further Equity Gains, AU Q1 CPI Due Later

The USD sits a touch lower against the majors in the first part of Wednesday dealing. NZD is marginally outperforming, as US equity futures rise amid earnings optimism. Tech is leading the way, with Nasdaq futures up a further 0.55%, after solid cash gains in Tuesday trade. The regional Asia Pac equity tone is firmer.

• NZD/USD was last near 0.5940, around 0.10% firmer versus end Tuesday levels in NY. We are still short of intra-session highs from Tuesday near 0.5950. Outside of the positive equity tone, we had March trade data show a shift back into surplus from deficit, which has likely helped at the margins.
• AUD/USD is trailing a touch last near 0.6490, which is very close to Tuesday highs. AUD/NZD is off recent highs, back under 1.0930.
• USD/JPY is closed to unchanged, last near 154.75/80. We had slightly stronger than expected PPI services earlier. The print for March was 2.3% y/y, versus 2.1% forecast. US yields are close to unchanged in the first part of dealing.
• Coming up in a little over an hour is Aust Q1 CPI, which is the main event risk for the remainder of the session data wise. Y/Y momentum is expected to be lower than Q4, albeit with Q/Q core inflation unchanged.