- The New Zealand dollar fell more than 0.5% against its peers as CPI data missed expectations
- Consumer Price Index data showed no growth between the first and second quarter of 2017
- Year over year growth came in below expectations at 1.7% vs. 1.9% in the second quarter of 2016
Check out our analysts 3Q 2017 market forecasts for the New Zealand dollar on the DailyFX Trading Guides page
The New Zealand Dollar fell precipitously against all of its major counterparts as both the quarterly and yearly CPI measures missed analyst expectations.
The quarterly figure came in at 0.0 percent growth for 2Q of 2017, compared to 0.2 percent expected and 1.0 percent seen in the previous quarter. The year-over-year measure grew 1.7 percent relative to analyst expectations of 1.9 percent and 2.2 percent seen in the second quarter. Transportation accounted for the largest quarterly drop at 1.3 percent. In year-on-year numbers, telecommunication prices led the way lower, losing 4.6 percent.
The New Zealand Dollar subsequently fell against all of its major counterparts by more than half of a percent, and as much as 0.6 percent against the US Dollar. The probability of a rate hike in 2018 fell from nearly 82 percent to 79 percent, with soft inflation growth likely seen as pushing back the need for stimulus withdrawal. The next Reserve Bank of New Zealand rate decision meeting is scheduled for August 10.