Prints Highest Level Since Late Aug On U.S. PPI, Before Paring Back From Best Levels

NZD prints ~$0.6160, little changed from levels seen late in the NY session.

• The pair registered the highest level seen since late August on Tuesday, as softer than expected US PPI data drove US yields lower and equities higher in early NY dealing, with a high of $0.6203 seen in reaction to the data. The broader DXY then found a bottom after the data-inspired leg lower, recovering as we moved through the NY session.
• Reports that a Russian missile had killed two people in Poland (a NATO member) saw the cross come under pressure during the latter rounds of NY dealing, before finding support at $0.6130. The stabilisation came on the back of reports which pointed to the potential for the Ukrainian interception of a Russian missile fired at its territory, and subsequent spread of debris, as the cause of damage to Polish territory and the reported casualties. Russia strongly denied firing a missile at Polish territory. We still await confirmation and clarification on the situation.
• Technically, bulls look to target the 200-day EMA at $0.6242. A break through there would open the way to the high from 12 Aug at $0.6468. Bears need to breach the 100-day EMA at $0.6016 to re-establish the downtrend.
• There is a light domestic data calendar today, with just Non Resident Bond Holdings due. Participants will look for any further developments in the Poland-Russia situation as the G20 assesses the situation from Bali.