New Zealand CPI Adds 0.1% In Q4

Consumer prices in New Zealand were up a seasonally adjusted 0.1 percent in the fourth quarter of 2013 compared to the previous three months, Statistics New Zealand said on Tuesday.

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2013-01-20 21:45 GMT | [NZD - CPI]

• past data is 0.9%
• forecast data is -0.1%
• actual data is 0.1% according to the latest press release

if actual > forecast = good for currency (for NZD in our case)

NZDUSD M5 : 75 pips price movement by NZD - CPI news event :

NZD/USD down despite higher Q4 inflation

The New Zealand dollar fell during morning Asian trade on Tuesday, easing after an initial spike following fourth quarter inflation figures that rose more than expected.

Data released by Statistics New Zealand showed inflation rose 0.1% in the fourth quarter and up 1.6% on year, taking annual inflation up to a level last seen in the first quarter of 2012. Market expectations were for a 0.1% drop on the quarter and gain of 1.5% on the year. The inflation gain could put pressure on the Reserve Bank of New Zealand to hike its official cash rate in early 2014 on accelerating economic growth amid housing and other capacity constraints.

Later today the Bank of Japan is scheduled to start its two-day policy board meeting with a decision due on Wednesday. The Bank of Japan's nine-member board is expected to stand pat on monetary policy and may say downside risks in overseas markets have eased from the state of play seen in the semi-annual Outlook Report issued in October.

AUD/USD traded down 0.04% at 0.8807, USD/JPY traded down 0.02% at 104.15, and NZD/USD traded down 0.05% to 83.20.

On Monday, the Euro remained under pressure amid concerns that the subdued inflation outlook for the euro zone may prompt the European Central Bank to ease monetary policy further in order to safeguard the fragile recovery in the region.

NZD/USD Forecast January 21, 2014, Technical Analysis

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The NZD/USD pair fell during the bulk of the session on Monday, but found enough support to turn back around and bounce enough to form a hammer. This hammer of course suggests that the buyers are starting to come back into the marketplace, so will be interesting to see what this pair does next. A break the highs, we think that we try to reach the 0.84 level again, but we recognize there is a lot of noise between here and there. Quite frankly, we would rather trade the Australian dollar as it is a commodity currency, but much more obviously bearish.

Consumer prices in New Zealand gained a seasonally adjusted 0.1 percent in the fourth quarter of 2013 compared to the previous three months, Statistics New Zealand said on Tuesday. The headline figure surpassed forecasts for a flat reading following the 0.9 percent jump in the third quarter.

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The consumers price index (CPI) gives you information about changes to the prices of consumer items New Zealand households buy, and provides a measure of household inflation.

You can find out about price changes for 11 CPI groups: food, housing and household utilities, health, recreation and culture, education, communication, clothing and footwear, transport, alcoholic beverages and tobacco, household contents and services, and miscellaneous goods and services.

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