USD Consolidates, AUD/NZD Off Recent Highs

AUD is the weakest performer in the G-10 space at the margins, weaker than expected wages prints have weighed on the Aussie. Elsewhere moves have been limited as the USD consolidates, NZD was volatile around the RBNZ rate decision however the Kiwi is now little changed.

• AUD/USD is ~0.3% softer today, last printing at $0.6830/35. Australian WPI printed at 3.3 YoY vs exp 3.5%. Terminal RBA cash rate projections ticked lower after the data release. Downside support sits at $0.6812 the low from Feb 16.
• NZD/USD is little changed from yesterday's closing levels. The pair rallied ~0.6% from session lows in the aftermath of the RBNZ decision before paring gains. The lack of hawkish surprise and the bank leaving its terminal rate forecast unchanged, albeit slightly later, contributed to the lack of follow through.
• AUD/NZD now sits below the $1.10 handle, 2-Year AU-NZ rate differentials widened post Australia WPI and the RBNZ decision weighing on the pair. The cross is down ~1% from Monday's high.
• Elsewhere, USD/JPY is dealing at ¥134.90/95. Jan PPI Services printed at 1.6% marginally firmer than the estimated 1.5%.
• EUR is marginally firmer and GBP is little changed.
• Cross asset flows are mixed, e-minis are ~0.2% firmer and 10 Year US Treasury Yields are ~1bp lower. BBDXY is flat.
• In Europe today we have regional and national CPI from Germany as well as MBA Mortgage Applications. Minutes of the February FOMC meeting headline today’s docket.