Slumps Amid Broad USD Rebound, PSI and Food Prices On Tap Today

NZD/USD slumped through Friday's session, amid broad USD gains. The Kiwi dollar was the worst performer within the G10 space, dropping 1.45% for the session. From highs above 0.6300, the pair sank back sub 0.6200, although found support and closed above 0.6200, which is where we track in early trade today (last 0.6205/10).

• The dollar benefited from better than expected data, most notably 1yr ahead inflation expectations from the U. of Mich consumer survey (4.6% versus 3.7% forecast). US yields climbed sharply, led by the front end (2yr back to 4.10%, +13bps). Hawkish Fed rhetoric also aided the USD at the margins.
• Despite NZD's slump, we remain within recent ranges, lows for April come in close to 0.6180, which was also a support zone late in March. So this region could be watched on the downside if we see a further USD recovery. Highs from late last week came in around the 0.6315 level.
• On the data calendar today is the performance of service index print for March, prior read was 55.8. March food prices are also due. The prior print came in at +1.5%.