16 Jul 2015
NZD/USD: Critical levels, dumped again on CPI's
FXStreet (Guatemala) - NZD/USD is currently trading at 0.6567 with a high of 0.6604 and a low of 0.6559.
NZD/USD is lower again with the release of the CPI results in New Zealand , missing expectations Y/Y and Q/Q. We are now making lower 5 year lows.
CPI arrived as 0.3% Y/Y Q2 vs 0.4% while Q/Q arrived 0.4% vs 0.6% expected.
Earlier, there was a heavy sell off in the bird on the back of Fonterra’s GlobalDairyTrade price index that dropped 10.7%, which equates to the probability of the RBNZ cutting rates again this year, especially as with CPI's coming in lower. The US dollar was also bid earlier pressuring the Kiwi lower on Yellen's testimony where rates were again expected to be in the rise before the year is out. Technically, we have broken to the downside through key support of 0.6580 and on target for 0.6420.
NZD/USD is lower again with the release of the CPI results in New Zealand , missing expectations Y/Y and Q/Q. We are now making lower 5 year lows.
CPI arrived as 0.3% Y/Y Q2 vs 0.4% while Q/Q arrived 0.4% vs 0.6% expected.
Earlier, there was a heavy sell off in the bird on the back of Fonterra’s GlobalDairyTrade price index that dropped 10.7%, which equates to the probability of the RBNZ cutting rates again this year, especially as with CPI's coming in lower. The US dollar was also bid earlier pressuring the Kiwi lower on Yellen's testimony where rates were again expected to be in the rise before the year is out. Technically, we have broken to the downside through key support of 0.6580 and on target for 0.6420.