• NZD/USD trades in negative territory for the third consecutive day around 0.6147 on Wednesday.
• US CPI was stronger than expected, rising 0.04% MoM in February vs. 0.3% prior.
• The lack of clarity about any supporting measures from the Chinese authorities drags the Kiwi lower against the USD.

The NZD/USD pair hovers around the mid-0.6100s during the early Asian session on Wednesday. The rebound of the US Dollar (USD) and higher US Treasury bond yield exert some selling pressure on the pair. The pair remains at the mercy of the USD price dynamics and the broader risk sentiment amid the quiet day in terms of economic data on Wednesday. At press time, NZD/USD is trading at 0.6147, down 0.06% on the day.

Inflation in the United States climbed above 3% in February, keeping the Federal Reserve (Fed) on course to wait at least until the summer before starting to lower interest rates. The US Consumer Price Index (CPI) data for February came in stronger than expected, rising 0.04% MoM from 0.3% in January. The Core CPI arrived at 0.4% MoM and 3.8% YoY in February. The upbeat inflation data might convince the Fed to focus on more data and allow policymakers to avoid having to rush to cut rates. This, in turn, boosts the Greenback and weighs on the NZD/USD pair.

On the other hand, the lack of clarity about any supporting measures to restore China's struggling property markets remained a headwind for the China-proxy New Zealand Dollar (NZD). The market sentiment has worsened since Moody’s downgraded investment grade rating for Vanke, China’s state-backed developer.

Market participants will focus on US February Retail Sales, due on Thursday. The figure is estimated to improve to a 0.8% MoM rise from a 0.8% fall in January. Investors will take cues from the data and find trading opportunities around the NZD/USD pair.