News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The Australian Dollar remains vulnerable to most of its major counterparts, with AUD/USD and AUD/JPY resuming losses. Did AUD/NZD bottom? AUD/CAD may consolidate. Get your weekly Australian Dollar forecast from @ddubrovskyFX here: https://t.co/sjh91mjtXs https://t.co/dGT067zKnH
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/VLZQhrQTAf
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/j5xDAG6LLb
  • While the meetings of central bankers in the US, Japan and the UK will be front, left and center of traders’ minds this coming week, it would be wise not to ignore next Sunday’s German Federal Election. Get your euro forecast from @MartinSEssex here: https://t.co/m920Uvmngm https://t.co/yQYtfHf66s
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/Dqq9S9vGvo
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/lccPTTlvj0
  • GBP/USD’s consolidation could end soon if price breaks out of a symmetrical triangle in play since July. At this time, a downside breakout is likely following the appearance of a death cross. Get your weekly $GBP forecast from @DColmanFX here: https://t.co/WIKdSesfkJ https://t.co/Fx0qr32xgI
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/IRS9MaA7h8
  • The Federal Reserve rate decision is likely to sway the near-term outlook for the price of gold as the central bank appears to be on track to scale back monetary support. Get your weekly gold forecast from @DavidJSong here: https://www.dailyfx.com/forex/fundamental/forecast/weekly/CHF/2021/09/18/Gold-Price-Outlook-Hinges-on-Fed-Rate-Decision-Forward-Guidance.html https://t.co/dWWxtErjK0
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/4qxwiJsV1K
Subdued New Zealand Consumer Price Index (CPI) to Tame NZD/USD Rally

Subdued New Zealand Consumer Price Index (CPI) to Tame NZD/USD Rally

David Song, Strategist

- New Zealand 4Q Consumer Price Index (CPI) to Hold Steady at Annualized 1.9%.

- Will Incoming RBNZ Governor Adrian Orr Endorse a Wait-and-See Approach for Monetary Policy?

Trading the News: New Zealand Consumer Price Index (CPI)

New Zealand CPI

New Zealand’s Consumer Price Index (CPI) is expected to hold steady at an annualized 1.9% during the last three-months of 2017, and signs of subdued price pressures may undermine the recent appreciation in NZD/USD as it encourages the Reserve Bank of New Zealand (RBNZ) to keep the cash rate at the record-low.

A batch of lackluster data prints may spark a bearish reaction in the New Zealand dollar as it encourages the RBNZ to endorse a wait-and-see approach for monetary policy, and incoming GovernorAdrian Orr may keep the central bank on the sidelines throughout the first-half of 2018 as ‘underlying inflation remains subdued.’

Nevertheless, another above-forecast CPI print may fuel the near-term advance in the kiwi-dollar exchange rate as it puts pressure on the RBNZ to start normalizing monetary policy. For additional resources, download and review the FREE DailyFX Advanced Guide for Trading the News to learn our 8 step strategy.

Impact that New Zealand’s CPI print has had on NZD/USD during the previous release

Period

Data Released

Estimate

Actual

Pips Change

(1 Hour post event )

Pips Change

(End of Day post event)

3Q

2017

10/16/2017 21:45:00 GMT

1.8%

1.9%

+8

-8

3Q 2017 New Zealand Consumer Price Index (CPI)

NZD/USD 15-Minute Chart

NZD/USD 5-Minute Chart

New Zealand’s Consumer Price Index (CPI) climbed to an annualized 1.9% from 1.7% in the second-quarter of 2017, with the cost of both tradables and non-tradables goods picking up during the three-months through September. The rebound in the headline reading for inflation may encourage the Reserve Bank of New Zealand (RBNZ) to drop its dovish outlook for monetary policy, but it seems as though acting Governor Grant Spencer is in no rush to lift cash rate off of the record-low as ‘headline inflation is likely to decline in coming quarters, reflecting volatility in tradables inflation.

The bullish reaction in NZD/USD was short-lived, with NZD/USD consolidating throughout the day as the pair closed at 0.7171. New to trading? Review the ‘Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow.

NZD/USD Daily Chart

NZD/USD Daily Chart
  • Topside targets remain on the radar for NZD/USD as the Relative Strength Index (RSI) holds above 70, with the pair at risk of making a run at the 2017-high (0.7558) as the momentum indicator appears to be pushing deeper into overbought territory.
  • A close above the 0.7330 (38.2% retracement) to 0.7380 (23.6% retracement) region opens up the Fibonacci overlap around 0.7520 (50% retracement) to 0.7530 (78.6% retracement), with the next region of interest coming in around 0.7680 (23.6% retracement).

Want more insight with all the major events on tap this week? Join DailyFX Currency Analyst David Song LIVE for an opportunity to cover key market themes along with potential trade setups!

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES