Overnight, the China PMIs were a touch better than expected for both manufacturing and non-manufacturing components. Improving global outlook, a robust banking system and a recovery in dairy prices all cause to maintain the positive tone on NZD after RBNZ Financial Stability Report publication during Asian session.

Today’s economic calendar is eventful but rather in the second tier data out of the US. Key data out of Canada this afternoon and Europe May inflation which is expected to drop back as yesterday’s German stats showed. 

10:00am EU: CPI Flash Estimate y/y, Core CPI Flash Estimate y/y. After weaker inflation data out of Germany on Tuesday, we expect to see a disappointing readings for Eurozone as well. Released monthly, only failed to deliver once this year, market consensus at 1.5 percent, previously 1.9 percent and 1 percent, previously 1.2 percent respectively.

1:00pm US: FOMC member Robert Kaplan speech. Dallas FED President Robert Kaplan in latest interview with CNBC said he sees two more interest rate hikes in 2017 and a start to the process off unwinding the central bank’s balance sheet. Any deviation to that during his speech at the Council of Foreign Relations in New York could spark more volatility in USD pairs.

1:30pm CAD: GDP m/m. Canada’s GDP forecast shows 0.2 percent, at the moment CAD is getting little help form oil prices.

2:45pm US: Chicago PMI. For the last three months, a level of a diffusion index positively surprised with better than expected readings. Chicago PMI is expected at 57, previously 58.3.

3:00pm US: Pending Home Sales m/m. Consensus at 0.7 percent with previous readings at -0.8 percent.