NZD

• US jobs. Mixed US jobs report. Payrolls stronger than expected in February, but the underlying detail and downward revisions worked in the opposite direction.• FX trends. USD lost ground last week, with the JPY upswing due to increased BoJ rate hike pricing a factor. AUD had its best week (+1.5%) since mid-December.• Event radar. Globally attention will be on the latest US CPI report (Tues) with retail sales due later in the week. BoJ policy expectations will also be in focus. The latest read on the US labour market came and went on Friday night without generating too much...

• Inflation focus. Strength in core inflation across Europe raised some concerns, but the US PCE deflator matched analyst predictions.• FX swings. There was a modest burst of intra-day FX vol overnight. The USD recouped its post PCE dip with month-end rebalancing a factor.• AUD & JPY. On net, AUD is little changed. Yesterday’s ‘hawkish’ BoJ rhetoric could be positive factor. A lower USD/JPY normally translates to a higher AUD. Inflation was in focus overnight with European country level readings and the US PCE deflator (the US Fed’s preferred gauge) released. The results generated a bit of intra-session volatility across...

• Negative vibes. A slightly more bearish tone ahead of tonight’s US PCE deflator data. Equities & bond yields a bit lower. AUD & NZD underperform.• RBNZ holds. RBNZ clipped the markets hawkish wings. Rates held steady & odds of another hike were watered down. NZD fell. This dragged on the AUD.• AU CPI. Headline inflation failed to re-accelerate in January. But there was little new info on services prices. AU retail sales released today. A slightly more bearish tone across markets overnight as traders gear up for the release of the US PCE deflator (the US Fed’s preferred inflation...

• Low vol. US/European equities consolidated, while bond yields nudged up. FX markets were well contained. AUD range traded over the past 24hrs.• RBNZ decision. RBNZ meets today. Markets are assigning a ~21% chance they hike rates. No change could see the NZD fall & AUD/NZD snap back.• AU CPI. January reading of the monthly CPI indicator due today. Annual inflation forecast to re-accelerate. This may catch the eye & give the AUD a boost. Another uneventful session overnight. US and European equities consolidated (S&P500 +0.1%), with yesterday’s lift in Asia not flowing through (China’s CSI300 index rose 1.2%, its...