Another rangebound start to the Asian session as the market appears to be waiting for Bernanke's testimony on Wednesday and Thursday. New Zealand's Consumer Price Index for the second quarter rose to a seasonally adjusted +0.2% which was lower than both estimates of +0.3% and last quarter's reading of +0.4%. On a YoY basis the index was up +0.7% which was lower than analyst's forecast of +0.8%.
New Zealand CPI (YoY)
The release of the RBA minutes did provide a flurry of activity as traders interpreted the statement to mean that the board seemed content with the effects of their policy initiatives so far. The AUD/USD surged higher, propelled no doubt by a bit of profit taking, as it broke through minor resistance at 0.9130 before stalling just below the 0.9180 level. Though the lack of overt dovishness provided a bit of respite for the Australian unit, further rate cuts cannot be ruled out, especially if economic growth continues to sputter.