NZD popped higher on the back of the...........>

KIWI: NZD popped higher on the back of the slightly better than exp. New Zealand

CPI release (there was a focus on the potential for downside surprise), but it

has unwound the move, with NZDUSD trading at 0.7310 & AUDNZD last at 1.0650,

after registering a high of 0.7343 & a low of 1.0611 respectively in the wake of

the CPI release.

- Earlier on RBNZ Gov. Orr noted that the RBNZ "expects very benign inflation

going forwards." Orr went on to say that "what really matters is the confidence

and expectation and belief that we are aiming for that midpoint of 2% all the

time."

- The RBNZ will publish its sectoral factor measure of inflation later Thursday

which will give a better indication of inflation pressures in the economy.

- Initial support in the NZDUSD is noted at the 55-DMA (0.7285), with resistance

at the April 17 high (0.7372).

- AUDNZD's initial support at the April 17 high (1.0601), resistance at the high

from Mar 29 (1.0669).