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Kiwi yo-yos on RBNZ, US inflation

NZD/USD hits fresh 6 month lows post RBNZ

Yesterday's trading range was a large one for the Kiwi as the twin effect of the Reserve Bank monetary policy statement and US inflation overnight buffeted the NZD/USD around, trading in a wide one cent range. Post RBNZ the New Zealand Dollar hit fresh 6 month lows around the 0.69 handle as the central bank stated that the next rate move could be up or down, and later in commentary referenced the impact that higher US funding costs were likely to have on local mortgage rates, a factor that would tighten credit conditions without any rate moves at all.

NZD/USD fell 1% in the immediate aftermath of the RBNZ statement. NZD/AUD remains off by 1% this morning, down in the low 0.92s and offering some value for exporters.

US inflation undershoots, leads Kiwi snap back

NZD/USD back up almost 1% on tepid price pressures in the US

April core inflation in the US undershot economists' expectations last night, recording a mere 0.1% increase for the month, or just 2.1% annualised. The weaker print has the potential to stall the Greenback's recent interest rate fuelled rally, as pundits assess if two more Fed rate hikes this year are in fact a done deal.

What we do know now is the RBNZ won't be moving any time soon and the Kiwi looks to have been jawboned into a lower trading range, against the Greenback but also against major crosses.

Bank of England holds rates at 0.5%

NZD/GBP snaps back from 6 month lows

To round out a busy 24 hours the Bank of England jolted the Pound last night with their decision to hold their benchmark rate at 0.5% and kept their options open for future moves. Markets had given some chance for a hike at last night's meeting or at least in the near future, but weaker economic data of late coupled with Brexit concerns continue to weigh on their decision.

Today we have some local manufacturing numbers due this morning, followed by Canadian employment data and US inflation expectations tonight. As the last 24 hours have shown realistic but ambitious market orders can work well in current conditions.

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