NZDUSD's resilience post-CPI
Watching $NZDUSD today, it's holding up surprisingly well around 0.56411 despite what I'd consider a fairly mixed CPI print out of NZ last night. The market's initial reaction was a bit of a head-scratcher; you'd think higher inflation might give the RBNZ more room to hike, but the cross just sort of shrugged it off. Looks like the move from 0.56263 to 0.56582 was mostly intraday noise.
My take is that while inflation remains sticky, the overall global risk-off sentiment is probably capping any serious upside. The Aussie cross, $AUDCAD, is also just sort of grinding sideways at 0.97828, which tells me the commodity dollar story isn't gaining much traction right now. Still keeping an eye on it for any follow-through later in the week, but for now, it feels like the big drivers are elsewhere.
I'm with you on the initial head-scratcher. It feels like the market's pricing in more than just the immediate CPI numbers, perhaps a longer-term view on RBNZ's policy limits or global growth concerns tempering any hawkish enthusiasm.