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U.S. inflation disappoints/ Draghi Speaks

A slow in pace

US CPI disappointed early on Friday, NZ time, with CPI coming in at 0.2% versus expected 0.3% . This provided the NZD/USD some much needed respite, after falling to a low of ~0.6900 on Thursday.

Can slowing inflation put a damper on The Federal Reserves Plan for more rate hikes later this year? Growing oil prices and disappointing inflation figures could produce an interesting scenario.

ECB President Mario Draghi spoke in the early hours on Saturday, with a lighter speech and a focus on risk mitigation. This saw the EUR retrace some ground against the USD - up approximately 0.94% since Thursday.

Trump rhetoric softening

Is the Trump Trade Tantrum losing steam?

In a surprising move, President Donald Trump afforded concessions to ZTE, a Chinese telecommunication giant, instructing the US Commerce department to re-open supply lines to the firm.

Suspicions are growing that Chinese officials have held talks with the administration as the giant company has become increasingly crippled by US trade barriers. This could set an interesting precedent for the protectionist ideal that Trump is pushing for the US - is it merely a bargaining tool, as many of his previous actions appear to have been?

Looking ahead for the week

Eyes on APAC

US retail sale figures are released on Wednesday. Closer to home however, Australian job figures are due on Thursday alongside the New Zealand Annual Budget.

With the new Labour government's first budget taking centre stage the NZD could have a volatile week ahead.

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