NZD/USD is holding up in the mid-0.61s. US CPI data today will be crucial as will NZ data tomorrow/Thursday, economists at ANZ Bank report. US Dollar Index has fallen for 3 days in a row and is now about 2.2% off 20-year highs seen last week. This correction has coincided with the rebound in bond yields ahead of US CPI and a lift in market expectations for the Fed Funds rate to peak at 4%, which is a high for the cycle.
FED funds rate to peak at 4%
NZ C/A and GDP data this week ought to shift the NZD focus back toward domestic factors. Technical bounce off 0.60 also looks more secure now.