NZD/USD bears in control ahead of RBNZ

Moving over to the early Asian session, NZD/USD is lower by near 0.5% down from a high of 0.7009 and off the lows near 0.6920. 

The focus in the US sessions was on the US Consumer Price Index where inflation data easily exceeded expectations, supporting the greenback and US yields. 

However, the moves were somewhat continued considering that the details fitted the Federal Reserve's ‘transitory’ narrative. With that being said, equities were weaker weighing on the bird also.

For the day ahead, all eyes will be on the Reserve Bank of New Zealand.

''The focus is on whether they can meet the market’s strong conviction that rate hikes will be forthcoming this year. With these expectations ingrained, it may be hard for the RBNZ to deliver a hawkish surprise, limiting NZD upside,'' analysts at ANZ Bank said. 

''There’ll be something for everyone in the Review, with an acknowledgement of the much stronger-than-expected starting point but also significant uncertainty about the outlook, including the key question of the persistence of inflation pressure,'' the analysts added.

''But in our minds the balance of potential regrets has tipped firmly towards keeping conditions too stimulatory for too long, and we expect the Committee will reach the same conclusion.''