NZD/USD rallies 30+ pips after NZ CPI crosses market expectations


  • NZD/USD benefits from better than forecast New Zealand (NZ) CPI data.
  • CPI QoQ came in above 0.6% expectations to 0.7%, YoY figure grew past-1.4% consensus to 1.5%.
  • Trade headlines, Fedspeak and US Retail Sales will be in the spotlight for now.

With the headline inflation data crossing downbeat market consensus, NZD/USD rallies more than 30 pips to 0.6320 by the press time of early Wednesday morning in Asia.

New Zealand’s third quarter (Q3) Consumer Price Index (CPI) rose above the market consensus of 0.6% and 1.4% to 0.7% and 1.5% on QoQ and YoY basis respectively.

While the initial reaction to the data was upbeat considering market expectations of a downbeat print, the price gauge still pushes the Reserve Bank of New Zealand’s (RBNZ) to hold its bearish bias.

The Kiwi pair has recently been under pressure as ping-pong on the trade front helped the US Dollar (USD) while cutting down on the commodities front. It should also be noted that the Global Daily Trade (GDT) Price Index data, 0.5% versus 1.8%, added weakness to the quote.

With no major data/events up for publishing, investors will keep an eye over the trade headlines and the US economic calendar that is up for publishing the United States’ (US) Retail Sales figures for September and some Fedspeak.

Technical Analysis

50-day Exponential Moving Average (EMA), around 0.6370 now, keep limiting pair’s near-term upside while 0.6260, 0.6250 and 0.6200 are likely adjacent rests that the bears can avail during further declines.

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD pressured around 1.13 after jump in US jobs

EUR/USD is trading around 1.13, down after US Non-Farm Payrolls shocked with a leap of 2.5 million jobs in May, contrary to all projections. The greenback is gaining while stocks are falling, a correlation breakdown. ECB stimulus previously supported the euro.

EUR/USD News

GBP/USD retreats from highs

GBP/USD is trading below 1.27, off the highs. The pound is struggling after Chief EU Negotiator Barnier reported little progress in Brexit talks. Robust US jobs support the dollar.

GBP/USD News

Gold sees weekly closing below $1700 - a caution for bulls

The steady decline in Gold prices (futures on Comex) accelerated on Friday, as the rates closed the week below the 1700 mark for the first time in three weeks at 1688.35. A weekly closing below the key 1700 level is unlikely to bode well for the bulls.

Gold News

Institutional demand exceeds Bitcoins supply

Greyscale floods the market with fresh money to satisfy the demand of its clients. Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences. Market remains at risk on the verge of new bullish territory.

Read more

WTI rallies above $39 as focus shifts to OPEC+ meeting

Crude oil prices built on Thursday's modest gains and rose sharply on Friday boosted by the upbeat market mood optimism surrounding Saturday's OPEC+ meeting. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures