NZD/USD drops 0.4% as New Zealand CPI misses expectations
NZD/USD declined 0.4% to 0.5920 during Monday's Asian session following weaker-than-expected New Zealand inflation data. The Q2 CPI rose 0.4% quarter-on-quarter, missing the 0.6% forecast, while annual inflation decelerated to 3.3% from 4.0% previously. The softer inflation reading increases the likelihood of more aggressive rate cuts from the Reserve Bank of New Zealand, with markets now pricing in a 50-basis-point reduction at the August meeting. The kiwi dollar found support at 0.5910, coinciding with the 50-day moving average, while resistance emerged at 0.5950. Technical indicators suggest further downside potential if support breaks, with the next target at 0.5880. The diverging monetary policy outlook between the RBNZ and other major central banks continues to weigh on NZD crosses, particularly against the USD which maintains its haven appeal.
Related Symbols:
NZDUSD
This is a summary of the original article by forexlive.com. To read the complete article, please visit the source website:
Read Full Article at forexlive.comNews data provided by Marketaux. ForexSentiment.live provides this summary as a convenience with proper attribution to the original source. The full article is available at the original publisher's website.
