FXStreet (Guatemala) – NZD/USD crashed on the release of the CPI data and it was a move that perhaps has been building up for some time given the poor start to the year with China and global uncertainties. The price went from 0.6475 on the release to as low as 0.6407.
CPI came as -0.5% vs -0.2% expected Q/Q Q4 vs 0.3% previous. That miss coupled with 0.1% y/e for the same quarter vs 0.4% expected and prior was a shock to markets, despite the unfavourable conditions in New Zealand. The RBNZ now may be forced to act sooner than later, weighing on the bird.
NZD/USD levels
Technically, this move exposes the 15th Jan lows at 0.6382 after breaking the 0.64 handle and the 0.605 recent lows earlier this month. The 200 sma on the hourly had been a string resistance and declining in the New Year bearish trend.
(Market News Provided by FXstreet)