NZD/USD kicks higher on CPI

The NZD/USD jumped back to recent highs following the New Zealand inflation figures, and the pair is trading back into 0.7330 as of writing.

The Kiwi spiked to 0.7341 immediately following the NZ CPI figures, with the quarterly and year-on-year figures coming in at expectations, at 0.5 and 1.1 percent respectively. Ultimately the numbers are on the lower side, and failed to beat expectations, but any positive growth for the NZ economy is a plus as the Reserve Bank of New Zealand (RBNZ) is stuck in a holding pattern awaiting inflation to begin picking up before they can move on interest rates. With the RBNZ's mandate now expanded to include employment stability, movement for the small central bank is going to be further hampered as they try to manage stubborn inflation and stubborn wage growth with the same set of tools.

NZD/USD Levels to watch

The technical outlook for the Kiwi remains unchanged following the CPI pop, and Flavio Tosti's earlier support and resistance calls are looking bang-on: "the pair has a bearish slant. Support lies at 0.7203 low of the day and then at 0.7243 swing low. On the other hand, resistances are priced in at 0.7340 supply level and at 0.7396 cyclical high."