NZD/JPY shorts were the best trade this week
Rough week for the kiwi
The FX market is certainly flashing different signals than equities. The yen was the top performer this week in a potential sign of risk aversion. That said, the Swiss franc was near the pile so flows are likely a bigger part of the story here than fundamentals.
At the bottom of the pile was the New Zealand dollar after a surprising drop in Q1 CPI.
The overall moves are a bit of a surprise because it felt like a quiet week. However many currencies were jarred by various one-off factors in quick moves.
Techncially, NZD/JPY is in the midst of a technical break below its recent range. On the CPI numbers it fell to the lowest since Feb 13 and we're revisiting that area now after a failed bounce. A break could easily be on its way to 74.00 or worse.