New Zealand's CPI rose a higher-than-expected 0.2% in the third quarter. Annual inflation was also 0.2%. The market had forecast the CPI to be unchanged for the quarter, with an annual rise of 0.1%. That compared to 0.4% in the prior quarter.
Housing-related prices were the main upward contributor to the annual rate, up 3.2% on the year. This was offset by transport prices, as prices for fuel and vehicle relicensing fell.
New Zealand's central bank is mandated to keep annual inflation in a 1-3% band, with a focus on the midpoint. It is widely expected to cut rates by 25 basis points to a record low 1.75% on November 10 as inflation remains well below target. However, today’s CPI reading lowers the likelihood of a further cut in 2017.
We got long at 0.7110 yesterday. Daily RSI is biased up, so further gains look likely. The October 14 low acts as a support. Our NZD/USD long target is 0.7290.
GrowthAces.com - Daily Forex Trading Strategies
Housing-related prices were the main upward contributor to the annual rate, up 3.2% on the year. This was offset by transport prices, as prices for fuel and vehicle relicensing fell.
New Zealand's central bank is mandated to keep annual inflation in a 1-3% band, with a focus on the midpoint. It is widely expected to cut rates by 25 basis points to a record low 1.75% on November 10 as inflation remains well below target. However, today’s CPI reading lowers the likelihood of a further cut in 2017.
We got long at 0.7110 yesterday. Daily RSI is biased up, so further gains look likely. The October 14 low acts as a support. Our NZD/USD long target is 0.7290.
GrowthAces.com - Daily Forex Trading Strategies
