NZD Outperforms Post RBNZ Decision

Outside of NZD gains, the general G10 FX tone has been a quiet one ahead of key event risks in the US later. The BBDXY was last near 1240.65, slightly down on end Tuesday levels.

• NZD/USD is up around 0.25% in latest dealings, which puts the pair at 0.6075. The RBNZ left rates on hold as expected, but didn't give off any dovish rhetoric. The central bank reiterated that restrictive policy has to be maintained for a sustained period to ensure a return to the inflation target.
• For NZD/USD we are right on Tuesday highs and testing resistance at the 50-day EMA. A break above would likely see 0.6100 targeted, while initial support is at 0.6040 (20-day EMA), then 0.6000 (round number support).
• AUD/USD sits slightly weaker, last near 0.6620. This has helped nudge the AUD/NZD cross back to 1.0900, with recent highs at 1.0950/60.
• USD/JPY has been steady, last in the 151.75/80 region. BoJ Governor Ueda was again before parliament. He noted the BOJ would consider monetary policy change should the risk of the underlying inflation rate rising above 2% increase due to higher import prices driven by the weak yen. His appearance didn't impact yen though.
• Looking ahead, the main focus in the US session will be the CPI print, followed by the FOMC Mins.