NZD/USD last trades flat at $0.6748, after a...>

KIWI: NZD/USD last trades flat at $0.6748, after a ~35 pip jump on the back of a

stronger than exp. NZ CPI print let it shake off weakness triggered by worries

re: Sino-U.S. trade relations, with the rate closing 19 pips higher Tuesday. NZ

Q4 CPI came in at 1.9% against the 1.8% forecast. Worth noting, however, that

the figure undershoot the 2.0% predicted by the RBNZ's most recent MPS (see our

analysis piece "Soft NZ CPI Data Could Be Trigger For Lower Kiwi"). In terms of

the breakdown of the reading, the non-tradable component topped the RBNZ's

estimates, while the tradables component missed. Worth mentioning in the

European evening on Tuesday, Larry Kudlow denied press reports claiming prelim.

Sino-U.S. trade talks have been cancelled. 

- On the technical side, bulls need a clean break above yesterday's high of

$0.6755 before shifting focus to the $0.6772-$0.6795 area, which contains

several key DMA's. A jump above would open up the psychological $0.6800 level.

Conversely, bears need a fall below the nearby 21-DMA at $0.6748 before

challenging yesterday's low of $0.6707. 

- Focus now turns to the RBNZ's sectoral inflation model due later today.