AUD/NZD trapped in consolidation ahead of Aussie CPI

• The Aussie and the Kiwi are ranging against each other, and the Aussie's upward mobility is being constrained by dovish sentiment.
• Aussie CPI figures are market sensitive, and will be an AUD-mover.

The AUD/NZD pair is trading up in the overnight session, testing 1.0650 ahead of Australian CPI figures.

The Aussie and the Kiwi have been trading places for several days, trapped in a small range after the AUD rebounded from a mid-April low of 1.0490. Further upward movement has been constrained by a dovish Reserve Bank of Australia (RBA) and souring economic data for Australia as key figures continue to slide away from expectations.

When is Aussie CPI and how could it affect AUD/USD?

Australian CPI figures are imminent at 01:30 GMT, and the expected figure of 0.5 percent represents a tick under the previous reading of 0.6, and further movement lower could be seen in the Aussie if the numbers miss. 

AUD/NZD Levels to watch

CPI figures could easily bump the AUD out of the current range between 1.0670 and 1.0615, and a break lower will see the pair moving towards April's low at 1.0485, while an upside swing could see the pair resume lifting into March's highs near the 1.0800 major handle.