The release of softer than expected NZ CPI....>

FOREX: The release of softer than expected NZ CPI figures has provided the focal

point of early Asia-Pac trade, as it sent NZD tumbling across the G10 currency

board. Q/Q CPI held steady at +0.1% vs. exp. of +0.3%, while its Y/Y counterpart

decelerated to +1.5% from the prior +1.9% vs. exp. of +1.7%. The figures also

missed the RBNZ's forecasts of +0.2% and +1.6% respectively. It is worth noting,

however, that non-tradable prices were firmer. Resultant kiwi weakness has

spilled over into the Aussie somewhat.

- JPY has struggled on the back of a positive start for the Nikkei 225, which

helped USD/JPY touch its fresh YTD high of Y112.17. Muted to no reaction was

noted upon the release of wider than forecasted Japanese trade surplus. 

- Focus during the remainder of the Asia-Pac session will fall on Chinese GDP,

industrial output, retail sales & unemployment, Japanese industrial output &

RBNZ's sectoral factor CPI. U.S. trade balance, as well as CPIs from the UK, EZ

& Canada will follow later in the day. Comments from BoE's Carney, ECB's

Villeroy & Lautenschlaeger, as well as Fed's Harker & Bullard are also awaited.