NZD/JPY struggles with 120 pips loss post-New Zealand CPI, Japan trade data in the spotlight


  • Disappointing New Zealand CPI figures dragged NZD/JPY to the lowest since mid-February.
  • Japan trade balance and the US-Japan trade talks could bear market attention.

NZD/JPY is on the rounds near 75.10 during early Wednesday. The pair lost nearly 120 pips to test the lowest level in nine-weeks after New Zealand inflation data strengthened expectations of the RBNZ’s rate-cut in May. Investors may now concentrate on March month Japan trade balance numbers for fresh impulse.

While positive news surrounding the US-China trade deal and overall risk-on sentiment have been helping the NZD/JPY pair off-late, weaker than forecast Q 2019 consumer price index (CPI) data from New Zealand favored broader market consensus of a rate-cut from the Reserve Bank of New Zealand (RBNZ) during May. 

The CPI figure came in at 0.1% on QoQ basis and 1.5% on a yearly format by lagging behind 0.3% forecast for quarterly reading and 1.7% expectations for YoY outcome.

The RBNZ turned bear in March and Governor Adrian Orr recently said that the central bank holds its bearish bias.

Coming up next on the traders’ radar will be Japanese trade balance data. The total merchandise trade balance is likely to have increased to 372.20 billion Japanese Yen (JPY) from 334.9 billion JPY. Further, imports might increase by 2.6% versus -6.6% (revised) prior whereas exports could improve to -0.9% from -1.2%.

It should also be noted that developments concerning the Japanese Economy Minister Toshimitsu Motegi’s trade visit to Washington could also entertain NZD/JPY players.

NZD/JPY Technical Analysis

Should the quote manage to remain under March month low of 74.70, 74.50, 74.00 and 73.80 can become sellers’ favorites.

On the upside clearance of 200-day simple moving average (SMA) figure of 75.10 can help the buyers to confront 100-day SMA level of 75.50 ahead of aiming current month highs near 76.00.

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 trims early gains, dangerously close to 1.1200

The positive tone of the pair fades in the American afternoon as demand for the dollar resumes, despite softer-than-expected US data. All eyes on the Fed this week.

EUR/USD News

GBP/USD extends decline, pierces 1.2550

Despite moving in slow-motion, GBP/USD decline is continuous with the pair trading at levels last seen in January, amid political uncertainty weighing on Sterling.

GBP/USD News

USD/JPY remains directionless above mid-108s on Monday

The USD/JPY pair is struggling to make a decisive move in either direction on Monday as the slightly upbeat market sentiment doesn't allow the safe-haven JPY to gather strength.

USD/JPY News

Gold remains on track to close with small losses below $1340

The XAU/USD pair, which closed higher on the weekly chart for the fourth straight time last week, is fluctuating in a relatively tight range on Monday amid a lack of significant fundamental drivers that had a lasting impact on the greenback's market valuation or the risk perception.

Gold News

Gold: Signs of bullish exhaustion ahead of the Fed

Gold's rally seems to have run its course with signs of bullish exhaustion emerging on technical charts ahead of Wednesday's FOMC (Federal Open Market Committee) rate decision.

Read more

Majors

Cryptocurrencies

Signatures