FXStreet (Mumbai) -The offered tone in NZD/JPY is gradually increasing towards the late-Asian session, largely as the traders relentlessly sold-off the New Zealand following softer NZ CPI print which further added to the increased RBNZ rate cut bets at its July rate decision.
NZD/JPY plunges from 83.54
Currently, the NZD/USD pair drops -1.04% at 80.68, sitting near fresh twenty-one month lows reached at 80.56 last hours. The cross in NZD/JPY slumped three big figures as markets continue to weigh falling price pressures in New Zealand released early today. Earlier today Statistics New Zealand reported a 0.4% rise in the CPI last quarter, coming in below the market’s expectation of a 0.5% rise, but in line with the RBNZ’s forecasts.
Softer inflation figures paired with tumbling global dairy prices seems to have made next week’s RBNZ rate decision almost a done deal, which is dragging NZD lower across the board. Fonterra’s Global Dairy Trade (GDT) auction took place on Wednesday, which saw global dairy prices tumble a further 10.7%.
Meanwhile, USD/JPY trades muted ahead of Fed Chair Yellen’s speech later tonight after yesterday’s hawkish comment broadly boosted the US dollar. Also, a batch of US data will be eyed for further cues on the pair.
NZD/JPY Levels to consider
To the upside, the next resistance is located at 82 levels and above which it could extend gains to 83.54 (Today’s High). To the downside immediate support might be located at 80 below that at 79.84 levels.
(Market News Provided by FXstreet)