FX markets were looking to US CPI data this week for direction, but it didn’t shift the dial, leaving markets focusing on next week’s Fed meeting, piling more pricing risk on that event. 

EUR is struggling amid stagflation fears (it fell sharply following this week’s hike), but by contrast, the USD continues to benefit from hope for a soft landing.

Until a differentiated local theme comes along, a continued period of range trading seems likely for the Kiwi.