NZD/USD has held onto gains registered just....>

KIWI: NZD/USD has held onto gains registered just ahead of the open on the back

of stronger than projected local CPI data for Q4. Both M/M and Y/Y readings

overshot market expectations, as well as forecasts from the RBNZ's most recent

MPS. NZD/USD spiked ~20 pips in reaction to the release and currently trades at

$0.6615, virtually unchanged on the day.

- To recap, the pair edged higher in European hours, only to erase all gains

into the WMR fix. Having bottomed out just shy the prior intraday low, it

recovered during the run-up of the CPI report.

- Bulls need a push above the Jan 16 high of $0.6665. This would allow them to

set their sights on the high of Jan 6 at $0.6680. Bears look for a drop below

Thursday's low/50-DMA at $0.6581/77 before targeting the Dec 18 low of $0.6554.

- NZ credit card spending hits later today. Next week, the focus turns to NZ

trade balance (Thursday) and ANZ Consumer Confidence Survey (Friday).