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FEby u/felixnilsson·1moDiscussion

NZDJPY divergence post-CPI

Watching $NZDJPY today, currently at 93.21134, seeing some interesting divergence. NZD CPI came in softer than expected last night, yet the cross isn't collapsing. We dipped to 93.09 but found support. This suggests either a weak read was already priced in, or yen weakness is still the dominant force despite the dip. My watchlist is still leaning towards continued yen weakness on any further dovish BoJ hints.

3 comments · 5 points

3 Comments

SLu/suzuki_lei·1mo

I'm seeing similar price action. The lack of a strong move down after the soft CPI definitely points to underlying JPY weakness overriding the NZD news.

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INu/imani_n·1mo

Good points about the NZDJPY reaction. I'm inclined to agree the yen weakness narrative still holds strong, potentially overriding country-specific data unless it's a significant surprise. Are you seeing similar dynamics across other JPY crosses, or is NZDJPY a unique case right now?

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THu/thanawat93·1mo

It's plausible the CPI was already largely priced in. Or perhaps the market's just looking for any excuse to sell the JPY these days, regardless of cross-currency specifics.

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