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It was a pretty quiet day data-wise for the Asian session players, but Kiwi failed to get the memo and dropped like a rock instead. What’s up with that?!

  • New Zealand’s visitor arrivals dip by 2.1% vs. 3.6% gain in February
  • Australia’s quarterly CPI down from 0.6% to 0.4% vs. 0.5% expected
  • Australia’s trimmed mean CPI increases from 0.4% to 0.5% as expected in Q1 2018
  • BOJ’s core CPI (y/y) down from 0.8% to 0.7% in March

Major Events/Reports:

Australia’s CPI release

Australia’s consumer prices rose by 0.4% in Q1 2018, missing estimates of a 0.5% growth and came in below the previous quarter’s 0.6% uptick.

On an annualized basis, prices retained their 1.9% growth when markets had expected them to increase by 2.0%. Turns out, food prices rebounded but others such as housing and transport costs grew at a softer pace.

RBA’s trimmed mean CPI – a more closely watched indicator – showed a 1.9% growth compared to its 1.8% reading in Q4. Meanwhile, RBA’s weighted mean CPI saw a 2.0% annualized expansion like in the previous quarter.

Overall, the numbers support the RBA members’ hints that there’s “not a strong case for a near-term adjustment in monetary policy.” Yikes!

No data? No problem!

The lack of fresh catalysts didn’t stop the Asian bourses from partying in the streets:

  • Nikkei is up by 0.85% to 22,276.6
  • Australia’s A SX 200 is up by 0.56% to 5,916.1
  • Hang Seng is up by 0.95% to 30,541.9
  • Shanghai index is up by 1.85% to 3,124.661

Meanwhile, OPEC’s efforts to tighten markets and speculations of fresh sanctions the U.S. would slap on Iran are pushing oil prices higher.

  • Gold is up by 0.22% to $1,327.40
  • Brent crude oil is down by 0.01% to $75.00
  • U.S. WTI is up by 0.28% to $69.08

Major Market Mover(s):

There was really no catalyst for the Kiwi’s bloodbath, but some analysts point to broken technical support levels across the board as possible reasons for the strong selloffs.

NZD/USD is down by 31 pips (-0.43%) to .7117
NZD/JPY is down by 27 pips (-0.34%) to 77.42
EUR/NZD is up by 75 pips (+0.44%) to 1.7155
GBP/NZD is up by 91 pips (+0.47%) to 1.9592
AUD/NZD is up by 49 pips (+0.46%) to 1.0687
NZD/CAD is down by 45 pips (-0.49%) to .9137

Watch Out For:

  • 6:00 am GMT: Switzerland’s trade balance (3.23B CHF expected, 3.14B CHF previous)
  • 8:00 am GMT: Germany’s Ifo business climate (102.7 expected, 103.2 previous)
  • 10:00 am GMT: U.K.’s CBI industrial order expectations to remain at 4 in April?