Rangebound As US Retail Sales, Weak US Equities Weigh On Kiwi

NZD prints $0.6145, little changed from levels seen late in the NY session, down ~0.2% in yesterday's trading.

• The pair advanced in Wednesday’s European session, registering a high at $0.6194 as risk-on flows weighed on the USD. The Kiwi faced resistance at this level paring gains throughout the remainder of the day as strong US retail sales and hawkish Fedspeak saw the pair retest lows seen in Asian session, before finding support $0.6130 and recovering to print at current levels.
• US Equities fell, S&P500 down ~0.7%, after retail sales posted the biggest increase in eight months in October indicating the economy could withstand further rate hikes. Hawkish Fedpseak from Williams, Daly and Waller reinforced the recent hawkish communique seen from Fed officials.
• Technically, bulls look to target the 200-day EMA at $0.6241. 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 $0.6019 to re-establish the downtrend.
• 3Q PPI is on the wires shortly, there is no estimate for this number, however it will be watched carefully to see if the OIS market's pricing for next week's RBNZ meeting is justified. Across the Tasman Australian employment figures are also on tap today, any significant deviation from the expected 3.5% unemployment rate could leave AUD/NZD derived flows in the driving seat post data publication.