April 17, OctaFX – The New Zealand dollar declined in early trading. This happened after the country’s inflation numbers missed the consensus estimates. In the first quarter, the headline CPI rose by 1.5%, which was lower than the expected 1.7%.
In the fourth quarter of last year, the prices had risen by 1.9%. On a QoQ basis, the CPI rose by 0.1%, which was lower than the expected 0.3%. The soft CPI data raises the likelihood that the RBNZ could cut rates later this year.
New Zealand dollar declines sharply to 0.6735
The NZDUSD pair declined sharply after disappointing inflation numbers from New Zealand. The pair reached an intraday low of 0.6665, which was the lowest level since January. The pair then pared some of those losses and is currently trading at 0.6735.
On the four-hour chart, this price is lower than the 25-day and 50-day moving averages. The MACD has been relatively unmoved while volumes have moved up slightly. The pair will likely resume the downward trend as inflation worries continue.
This article was provided by OctaFX. It should NOT substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.