NZD/USD flows: Q1 CPI Overshoot

The NZ Q1 CPI came in at 3.1% y/y, overshooting RBNZ's target band as expected. More importantly, the overshoot happened before the energy shock, which led to market participants believe Q2 will be even higher and force the RBNZ to turn hawkish.

NZD/USD jumped higher and is still trading 0.43% higher at 0.5916.