NZD/USD Underperforms Ahead of US CPI, AUDNZD Reverses Fridays Sell-Off

NZD has been the worst performer of the G10 currencies to start the week, lower by 0.29%. NZDUSD once again failed to break the 0.6155/06160 area a level the pair has been attempting to break back above since Jan 24. US CPI is out today, expect markets to remain rangebound until the release.

• NZDUSD opened trading for the week at the upper bounds of its recent trading ranges around the 0.6150 level, failing to break and hold above there in the Asian session on Monday, the pair sold off a touch but has remained in a tight trading range ahead of US CPI data later today. Levels to watch 0.6155/0.6160 a break above here could signal a move back to 0.6176, high from Jan 31, opening up a move back to 0.6200, to the downside a break below 0.6066 the lows from Jan 23, could open up a retest of the yearly lows at 0.6041. Currently, the 20 and 50-day EMAs are situated at 0.6125/0.6140.
• AUDNZD traded higher throughout Monday, after bouncing of fresh yearly lows of 1.0586 made during Fridays session. The pair has reversed the full move lower from Friday to trade back to 1.0657. To the upside resistance holds at 1.070, while downside support is at 1.060. RBA Acting Assistant Governor Marion Kohler will be speaking at a conference in Sydney this morning
• Looking ahead: NZ 2yr inflation Expectation, AU Consumer Confidence, AU Business Confidence and US CPI Data.