NZD was comfortably the worst G10 performer....>

KIWI: NZD was comfortably the worst G10 performer overnight, after it cratered

early doors on the back of softer than forecasted NZ Q1 CPI data, the day after

RBNZ Gov Orr reiterated that the Bank is watching economic data. The Q/Q gauge

held at +0.1% vs. exp. of +0.3%, while its Y/Y counterpart slowed to +1.5% from

+1.9% vs. exp. of +1.7%. Both figures also undershot the RBNZ's estimates of

+0.2% and +1.6% respectively. Worth noting that non-tradable prices were firmer.

- The release pressed NZD/USD to its reaction/intraday low of $0.6668, but the

pair immediately retraced some 1/3 of losses before posting another leg higher

on the back of strong Chinese GDP & economic activity data.

- The rate then registered a ~15 pip knee-jerk higher after the RBNZ sectoral

factor inflation model came in unch. at +1.7%.

- NZD/USD last deals at $0.6732, 31 pips worse off, with the 200-DMA at $0.6733

capping recovery attempts. A convincing break above would bring the $0.6800 mark

back into view. On the downside, a dip through the Apr monthly low of $0.6714

would expose the lower 1.0% 10-DMA envelope at $0.6681.

- The NZ calendar is virtually empty during the remainder of this week.