19 May 2015
NZD/USD turns positive, spikes above 0.74 on NZ data
FXStreet (Mumbai) - The New Zealand wiped out previous losses and turned in green against the American dollar in the mid-Asian session, driving NZD/USD back above 0.74 barrier. The Kiwi erased softer NZ PPI led losses and climbed higher after the country inflation expectations unexpectedly surprised markets on the upside, coming in above estimates and thereby easing RBNZ rate cut expectations.
NZD/USD jumps from 0.7370
Currently, the NZD/USD pair trades higher by 0.35% at fresh session highs of 0.7420, finally surpassing 0.74 handle. NZD/USD reversed losses and turned sharply in the positive territory after upbeat NZ inflation expectations data beat market forecasts. With the higher inflation prospects, expectations of Reserve Bank of New Zealand (RBNZ) rate cut measure may be eased for now, which boosted the New Zealand dollar. RBNZ's 2 year Q2 2015 inflation expectations came in at 1.85% versus 1.8% prior and an inflation mid-point target of 2%.
Earlier in Asia, the Kiwi dropped after both of New Zealand's producer price indices came in much weaker than expected in the first quarter. The output Producer Price Index (PPI) fell 0.9% in the March quarter, while the Input PPI plunged 1.1%. Markets had picked a 0.1% rise in the output index and a 0.6% decline in input prices.
Meanwhile, markets now turn focus on NZ Fonterra’s GDT Price Index and US housing data due later today for further momentum.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7454 (May 18 High) levels and above which it could extend gains to 0.7500 levels. To the downside immediate support might be located at 0.7359 (Today’s Low) levels below that at 0.7314 levels.
NZD/USD jumps from 0.7370
Currently, the NZD/USD pair trades higher by 0.35% at fresh session highs of 0.7420, finally surpassing 0.74 handle. NZD/USD reversed losses and turned sharply in the positive territory after upbeat NZ inflation expectations data beat market forecasts. With the higher inflation prospects, expectations of Reserve Bank of New Zealand (RBNZ) rate cut measure may be eased for now, which boosted the New Zealand dollar. RBNZ's 2 year Q2 2015 inflation expectations came in at 1.85% versus 1.8% prior and an inflation mid-point target of 2%.
Earlier in Asia, the Kiwi dropped after both of New Zealand's producer price indices came in much weaker than expected in the first quarter. The output Producer Price Index (PPI) fell 0.9% in the March quarter, while the Input PPI plunged 1.1%. Markets had picked a 0.1% rise in the output index and a 0.6% decline in input prices.
Meanwhile, markets now turn focus on NZ Fonterra’s GDT Price Index and US housing data due later today for further momentum.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7454 (May 18 High) levels and above which it could extend gains to 0.7500 levels. To the downside immediate support might be located at 0.7359 (Today’s Low) levels below that at 0.7314 levels.