CPI Data Reaction, NZD/USD Drops to 5-Week Low!
The price on the chart of the NZD/USD currency pair today (Thursday) fell to its latest 5-week low after the market reacted to the release of New Zealand inflation data at the start of the Asian session just now.New Zealand's consumer price index (CPI) reading for the first quarter came in at 1.2%, lower than the previous reading of 1.4%, and missing expectations for an increase to 1.5%.Thus, this situation prompts expectations for New Zealand's central bank to slow down its monetary policy tightening.The Reserve Bank of New Zealand (RBNZ) at its early April meeting surprised the market when it aggressively raised interest rates by 50 basis points to 5.25%.It is possible that the market could start to see the effects of the previous policy tightening based on the recent decline in the inflation rate.The NZD/USD price chart is starting to show a move lower this morning after showing a relatively flat move from the beginning of the week.After hovering at the 0.62000 level, the decline in price has managed to surpass the level reached last Monday around 0.61600 and recorded the latest lowest level since mid-March.The price drop is expected to continue to reach the 0.61000 level and test the main support zone.Meanwhile, the expectation for a price increase is that the price needs to cross the 0.62000 level again before giving a signal of a trend change.A move higher is seen to return to last week's resistance zone around 0.63100 if the bullish pattern is successfully displayed again.
The price on the chart of the NZD/USD currency pair today (Thursday) fell to its latest 5-week low after the market reacted to the release of New Zealand inflation data at the start of the Asian session just now.
New Zealand's consumer price index (CPI) reading for the first quarter came in at 1.2%, lower than the previous reading of 1.4%, and missing expectations for an increase to 1.5%.
Thus, this situation prompts expectations for New Zealand's central bank to slow down its monetary policy tightening.
The Reserve Bank of New Zealand (RBNZ) at its early April meeting surprised the market when it aggressively raised interest rates by 50 basis points to 5.25%.
It is possible that the market could start to see the effects of the previous policy tightening based on the recent decline in the inflation rate.
The NZD/USD price chart is starting to show a move lower this morning after showing a relatively flat move from the beginning of the week.
After hovering at the 0.62000 level, the decline in price has managed to surpass the level reached last Monday around 0.61600 and recorded the latest lowest level since mid-March.
The price drop is expected to continue to reach the 0.61000 level and test the main support zone.
Meanwhile, the expectation for a price increase is that the price needs to cross the 0.62000 level again before giving a signal of a trend change.
A move higher is seen to return to last week's resistance zone around 0.63100 if the bullish pattern is successfully displayed again.
