Watch US CPI next week - TDS

Analysts at TD Securities explained next week's events and draw out US CPI as a highlight.

Key quotes:

"Weaker gasoline and food prices should push headline CPI down a further 0.1%, marking the second consecutive monthly decline. However, favourable base effects should push annual inflation higher to 1.2% from 0.7% last month.

Core inflation should remain weak and eke out a 0.1% m/m gain while the pace of inflation should slip modestly, falling to 2.0% on account of the strong dollar."

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NZD/USD was hammered in Asia on risk off and it is time to pay up for the free ride it enjoyed on dollar weakness earlier in the previous sessions this week.
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