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.

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
EUR/USD
Mixed
Oil - US Crude
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
Wall Street
Bullish
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
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Heads Up:🇦🇺 Ai Group Services Index (APR) due at 22:30 GMT (15min) Previous: 58.7 https://www.dailyfx.com/economic-calendar#2021-05-06
  • The US Dollar is still struggling against most ASEAN currencies. USD/SGD remains downside-focused despite recent gains. USD/THB is eyeing a triangle. USD/IDR and USD/PHP may point lower. Get your market update from @ddubrovskyFX here:https://t.co/6Nvvmz8h6d https://t.co/dX69A341oc
  • US Dollar Outlook: USD/CAD Volatility to Rise, Jobs Data Looms -via @DailyFX Link to Full Analysis: https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2021/05/06/us-dollar-outlook-usd-cad-volatility-to-rise-jobs-data-looms.html #NFP $DXY $USDCAD https://t.co/OIYZ2YXxLK
  • Heads Up:🇺🇸 Fed Kaplan Speech due at 22:05 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-06
  • The Federal Reserve discussed the vulnerability of asset prices should appetite change. Get your market update here: https://t.co/0nAEKEX1eh https://t.co/BD24UcDeyT
  • EUR/USD stronger amid broad USD weakness on Thursday $EURUSD https://t.co/h042KoSyuA
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.98% 🇨🇭CHF: 0.60% 🇦🇺AUD: 0.49% 🇳🇿NZD: 0.26% 🇯🇵JPY: 0.11% 🇬🇧GBP: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/4u2cNfSmLn
  • RT @BrendanFaganFx: Federal Reserve Hints at Potential Declines in Asset Prices, Calls for Hedge Fund Transparency #Fed #FederalReserve #F…
  • Both EUR/JPY and EUR/USD are hovering near multi-year downtrend downtrends, while EUR/GBP may still have more room to the topside. Get your $EUR market update from @CVecchioFX here:https://t.co/2SYCKwz8hz https://t.co/tj6UQUDzRL
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 3.18% Gold: 1.61% Oil - US Crude: 0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/mo9LS3teJl
Forex News: Falling Producer Prices May Dent Inflation Expectations, NZDUSD Flat

Forex News: Falling Producer Prices May Dent Inflation Expectations, NZDUSD Flat

Gary Kerdus,

THE TAKEAWAY: Producer prices decline > Falling prices may exert pressure on RBNZ to revise inflation expectations lower > NZDUSD flat

The New Zealand Dollar was little changed as prices producers paid for production inputs declined 1 percent while producer’s sales prices declined 0.9 percent in the third quarter signaling industrial economic activity may not have gained the level of pace the RBNZ expected to bring consumer price levels back up to the 1 to 3 percent medium term threshold levels. Interestingly, two year inflation expectations held by the central bank have fallen to 2.3 percent, down by 23 percent since reaching a peak in June 2011, which is still within their medium target range. Expectations may still have room for downward revision if gauges such as producer input and output prices continue to show signs of weakness. Moreover, the NZDUSD cross has declined by roughly 2 percent since June 2011 where price action began to technically trade within a large consolidation range.

The kiwi has held up relatively well against safe haven currencies like the greenaback as risk aversion has recently gripped the US equity markets since mid September. It’s unclear whether Forex traders will decide to play catch-up with risk aversion as measured by the S&P 500’s declines or if FX participants determine the yield is worth the risk of a significant move lower where the former may fundamentally align with soft CPI and production price figures. Currently, currency traders expect a 27 percent probability the RBNZ will reduce interest rates by 25 basis points on December 5. A cut may surprise markets and likely weigh heavily on the New Zealand Dollar.

NZD/USD, Daily Chart

Forex_News_Falling_Producer_Prices_May_Dent_Inflation_Expectations_NZDUSD_Flat_body_Picture_1.png, Forex News: Falling Producer Prices May Dent Inflation Expectations, NZDUSD Flat

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

DISCLOSURES