Trims Post-US CPI Gains

NZD/USD prints at $0.6215/20, the pair was ~0.4% firmer yesterday.

• The pair firmed in the immediate aftermath of US CPI, which was a touch softer than expected, before meeting resistance at the 20-Day EMA ($0.6235).
• Weakness in US Equities, as recession fears in the US grow, weighed on the NZD which trimmed gains through the NY session. Support was seen ahead of $0.62 and NZD/USD held above the handle and firmed into the close.
• Technically we continue to consolidate, the 20-Day EMA ($0.6235) has capped rallies in recent dealing, bulls look to sustain a break of here to target $0.6379 high from April 5. Bears target 2023 lows at $0.6085.
• Cross asset flows were mixed; DXY was down ~0.7% and the S&P500 finished ~0.4% lower. 2-Year US Treasury Yields were ~7bps lower.
• The domestic data calendar is empty today. Trans-tasman flows may come to the fore, via AUD/NZD, as the latest Australian Labour Market Report is due. The market looks for an uptick in the unemployment rate to 3.6%.