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.

Free Trading Guides
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
Oil - US Crude
More View more
Real Time News
  • What are some risk trading management techniques? Find out: https://t.co/RShdlDz9RA #tradingstyle https://t.co/M3ASPIHAep
  • #Dow Jones stages impressive recovery on a firm NFP report. #FTSE 100 eyes UK general election. Get your equities technical analysis from @JMcQueenFX here: https://t.co/o28UcG6N3l https://t.co/SwGAaFCFND
  • Why do you require consistency in trading and why does it matter? Find out: https://t.co/f4y1FOOZnM #tradingstyle https://t.co/x5HgYopWc5
  • The USD may rise if the FOMC re-affirms its data-dependent approach and cools 2020 rate cut bets. US retail sales and CPI data may also give the Fed impetus to hold rates. Get your $USD market update from @ZabelinDimitri here: https://t.co/XnDITaDOox https://t.co/A480uVMqF2
  • What tools does the ECB have left to stimulate the Eurozone? Where is the #Euro heading? Find out from Chief Eurozone Economist at Pantheon Macroeconomics Claus Vistesen only on Trading Global Markets Decoded #podcast hosted by @MartinSEssex here:https://t.co/Twr44cZ1GB https://t.co/DXlDH5Cp9e
  • The price of oil extends the advance from the October low as #OPEC and its allies pledge to take additional steps to balance the energy market. Get your crude #oil market update from @DavidJSong here: https://t.co/llGq8yPFH4 #OOTT https://t.co/1OCVOIrK98
  • Gold closed lower after paring early-week gains post-NFP on Friday. But will price finally break support? These are levels that matter on the XAU/USD weekly chart. Get your gold technical analysis from @MBForex here: https://t.co/ovGheRg4MQ https://t.co/ZEQSYktj0w
  • What is your #tradingstyle? Take the quiz and let us know: https://t.co/LPBOcS0Vtd https://t.co/l6FvtcADEH
  • Asia’s vast and growing importance to the world economy is not yet matched by the presence of a currency trading center to rival the established order. Get your update on market drivers in Asia from @DavidCottleFX here: https://t.co/E2hqoRdO7q https://t.co/dnrAMFK4U2
  • Geopolitical developments send #oil prices soaring or falling. Get your market update from @MartinSEssex here:https://t.co/XVXLyG8vjq #OOTT https://t.co/RMk5Eb5fLU
Soft Consumer Prices Could Prompt RBNZ Policy Response, Kiwi Sold

Soft Consumer Prices Could Prompt RBNZ Policy Response, Kiwi Sold

2012-10-16 01:09:00
Gary Kerdus,

THE TAKEAWAY: New Zealand consumer prices report 0.8 percent gains > CPI figures below RBZN target could prompt response > Kiwi sold

The Kiwi sold sharply lower versus the US Dollar amid concerns a slowing New Zealand economy highlighted by contracting production and rising unemployment has put a squeeze on inflationary targets set by the Reserve Bank of New Zealand. Earlier today at 21:45 GMT consumer prices reported 0.8 percent increase in the third quarter narrowly falling below the RBNZ’s 1 to 3 percent medium term inflation target. Moreover, prices for consumer products have fallen from 5 percent in June 2011. Such a drop may reflect weakness in the labor market as measured by an uptick in unemployment and reduced take-home pay.

The below target inflation rate mixed with ebbing activity measures may prompt policy officials to reduce borrowing costs in an attempt to encourage credit growth and accelerate general activity hopefully stoking inflation rates. Currently markets appear to be pricing in a 16 percent probability of 25 basis point reduction to rates by the RBNZ during their next meeting on October 24. If inflation targets continue to disappoint and activity levels remain depressed, then the chance of further rate cuts may be more-than-remote which should ultimately reflect in market expectation readings.

NZD/USD, 1 Minute Chart

Soft_Consumer_Prices_Could_Prompt_RBNZ_Policy_Response_Kiwi_Sold_body_Picture_1.png, Soft Consumer Prices Could Prompt RBNZ Policy Response, Kiwi Sold

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


News & Analysis at your fingertips.