NZ CPI: Arrives as a miss at 0.1% Q/Q and a miss Y/Y at 1.5%

NZ Q1 CPI has been released and has disappointed on the yearly. Markets were expecting 0.3% q/q (0.1% prior) and 1.7% y/y (prior 1.9%)

  • Actual:  0.1% Q/Q vs 0.3% (0.1% prior) and a miss Y/Y at 1.5% vs 1.7% (1.9% prior).

A May easing, as some observers are expecting. could still on the cards with this data. 

New Zealand Q1 CPI has captured the market's full attention today considering the fluid pricing over the RBNZ’s cash rate (about 25% chance of a cut in May, 65% chance by June). 

Full report:

From the March 2018 quarter to the March 2019 quarter, the CPI inflation rate was 1.5 percent. Housing and household utilities increased 3.0 percent, with rentals for housing up 2.4 percent, construction up 3.9 percent, and local authority rates up 5.1 percent.

Alcoholic beverages and tobacco increased 4.2 percent, with cigarettes and tobacco up 7.7 percent. Communication prices decreased 3.7 percent, with telecommunication equipment down 23 percent.

Meanwhile, analysts at ANZ Bank noted that in an interview yesterday, RBNZ Governor Orr stated that the NZD is in its “happy space”, after making explicit reference to the high NZD in the March OCR Review:

"The NZD TWI has depreciated to 73.4 compared to 75 prior to the Review, and the 74 projected in the Feb MPS. But the RBNZ will be aware that the only reason the NZD is in its happy space is because there are 40bp of OCR cuts priced in over the next year. Any sign that the RBNZ is unwilling to deliver that could see the NZD back in an “unhappy space” again."

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Bid in holiday-thinned trade, bullish channel breakdown confirmed

EUR/USD is mildly bid in Asia, but the gains could be short-lived, as yesterday’s sell-off seems to have put sellers in commanding position for the near term. 


GBP/USD: On the defensive despite strong UK retail sales

The path of least resistance for the GBP/USD appears to be on the downside. The British Pound slipped below 1.30 and closed under the April 5 low of 1.2987 yesterday.


USD/JPY: No reaction to BOJ’s decision to cut its routine buying of long-dated bonds

USD/JPY pair is currently trading at 111.93, having clocked a 112.00 earlier today. The Bank of Japan (BOJ) cut its purchases of bonds with maturities between 10 and 25 years to ¥160 billion, down ¥20 billion from the previous ¥180 billion. 


The Tale of the Prosperous Consumer-US Retail Sales

American consumers asserted the right to spend in a grand fashion in March boosting retail sales to the fastest expansion in 18 months as the booming job market put the shutdown marked holiday season to rest.

Read more

Gold Technical Analysis: Eyes corrective bounce on bullish 4H RSI divergence

Gold snapped its five-day winning streak with a 0.19 percent gain on Thursday, confirming a bullish divergence of the relative strength index on the 4-hour and hourly charts. 

Gold News