New Zealand Dollar was down 1.11% against the dollar on Forex on weak CPI data

The dollar NZD> New Zealand dollar began trading sharply lower and continued to decline at the end of the Asian session after inflation data in New Zealand pushed the expected timing of the next increase in interest rates by the Reserve Bank of New Zealand.

Analysts of the Forex Broker Company «FIBO-Group» prepared a review of the economic data for New Zealand.

Dollar exchange rate continues to be strengthened to New Zealand dollar after weak data New Zealand

Annual inflation in New Zealand in the 3rd quarter slowed to just 1.0%. On this day reported the Bureau of Statistics New Zealand. Given that economists expect to contain inflation, at least for the next six months, the low level of inflation may cause some concern to the Reserve Bank of New Zealand (RBNZ).

ASB Bank was among those who moved to a later date expectations for a rate hike. Bank economist said that a number of conditions, including mild inflation, means that now the bank forecasts following the RBNZ rate hike in October 2015, not in March of the same year. This coincides with the general opinion of economists, as well as with the results of the poll Wall Street Journal, conducted after the publication of the data.

The market mostly ignored the comments RBNZ manager Graeme Wheeler, published this morning. Wheeler reiterated that macroprudential policy can help to resolve concerns about the financial stability related to the housing market. He also said that the requirement that the RBNZ on the reduction of lending banks with high (greater than 80%) is the ratio of the volume of credit to provide "significantly ease the pressure on the housing market and inflationary pressures."

Perspectives of New Zealand and the US dollar on the Forex

On October 23, a New Zealander decline against the US dollar was 1.11%. The sharp decline followed a New Zealander after weaker than expected economic data. According to experts of the Masterforex-V World Academy http://www.masterforex-v.com/, likely that corrective growth in the medium term, the New Zealander was completed in the area of 0.8033, and the beginning of the next impulse wave decline pairs of NZD / USD hourly chart.

Based on the technical analysis chart below, more likely further weakening and strengthening of NZD dollar to 0.7807 area after the correction of the pair. Restructuring moving averages and turn them down, as well as the breakdown and consolidation below the upward sloping channel MF signal about the likely prevalence of medium-term trend downward.

However, in overcoming the resistance level near 0.7857 at high volumes and securing higher growth rates in the chart to the area 0.7913, followed by break of this level will cancel the negative outlook for the New Zealander.

The red dotted lines show the sloping channel MF. Continued downward trend arrow blue

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