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
EUR/USD
Bullish
GBP/USD
Mixed
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
USD/JPY
Mixed
Gold
Mixed
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
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
Bitcoin
Mixed
More View more
Real Time News
  • LIVE NOW: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=1338844901231735299&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Despite threats, Canada's financial system remains resilient -Wilkins
  • it's webinar time -> https://www.dailyfx.com/webinars/1338844901231735299?webinar=1338844901231735299&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr https://t.co/nUFhMrafDI
  • If you're bullish on 'risk', at least this is a statistical norm for the $SPX that can give a foothold. I wouldn't base my confidence principally on this seasonality average though... https://t.co/5trRmAPl8j
  • LIVE IN 5 MINUTES: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=1338844901231735299&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • China tariffs will go 'even higher' if there is no deal -Trump
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.00%, while traders in US 500 are at opposite extremes with 78.09%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/vHfjyXpzm7
  • LIVE IN 15 MINUTES: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=1338844901231735299&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • CAD: The $CAD has pulled off its best levels of the day with the currency tracking oil prices lower after Russia stated that they would not deepen oil production cuts.Get your market update form @JMcQueenFX here: https://t.co/2QSM4XcMNc https://t.co/3GTn1sT9rd
  • Senator Risch says the Senate will be voting on the Hong Kong Bill today at 5pm $USDCNH
Forex News: Falling Producer Prices May Dent Inflation Expectations, NZDUSD Flat

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

2012-11-19 03:31:00
Gary Kerdus,
Share:

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

News & Analysis at your fingertips.