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.