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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
New Zealand Dollar Falls Sharply as Inflation Numbers Disappoint

New Zealand Dollar Falls Sharply as Inflation Numbers Disappoint

Rajyavardhan Pasari,

Talking Points:

  • New Zealand 2Q CPI in at 1.6% vs. 1.8% Expected, 1.5% in 1Q
  • NZ Dollar Drops After Inflation Data Falls Short of Expectations
  • New Zealand Bond Yield Drop Hints at Fading RBNZ Outlook

The New Zealand Dollar fell sharply today as the nation reported its inflation figures for the month of June. The year-on-year CPI reading for the second quarter printed at 1.6 percent against market expectations of 1.8 percent and a prior figure of 1.5 percent. The quarter-on-quarter figure also fell short of forecasts calling for a 0.4 percent increase, coming in at 0.3 percent.

The Kiwi’s decline after the data release probably reflected the implication of lower-than-expected inflation numbers on RBNZ monetary policy expectations. Indeed, the slide in NZDUSD paced a parallel drop in New Zealand’s benchmark 10-year bond yield, hinting traders scaled back rate hike bets following the CPI release.

New Zealand Dollar Falls Sharply as Inflation Numbers Disappoint

NZDUSD [15 mins – 07/15/2014] Created using FXCM Marketscope.

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