Kiwi the laggard ahead of European markets open
Disappointing NZ Q1 inflation data sent the kiwi lower in Asian trading
But improved Chinese economic data for the month of March is helping to cushion the blow at the very least. NZD/USD fell to 0.6668 after the CPI figures were released but has now rebounded to 0.6735 as traders also retrace some of the earlier move to the downside.
Meanwhile, the aussie is leading gains as AUD/USD threatens a break of the 0.7200 handle buoyed by the better-than-expected data from China. Other risk assets are also feeling more confident on the day with bond yields holding a tad higher and equities also gaining some light ground so far ahead of European trading.
The dollar is holding slightly weaker against the rest of the major bloc but trading ranges in general remain relatively narrow to start the day. EUR/USD looks to be in the mood for an extension higher as it trades just above the 1.1300 handle but just take note that there are large expiries at the figure level rolling off today which could potentially keep price action limited in the session ahead.
The same goes for AUD/USD as there is a field of expiries between 0.7150-00, which could limit its upside potential should risk sentiment fail to capitalise on the slightly more positive tone in European trading later.