New Zealand Dollar Loses Gains Despite Positive CPI

The New Zealand dollar attempted to rally today, but failed and followed its Australian counterpart in decline. The currency dropped even as the inflation print came out better than expected.

The Consumer Price Index rose 0.5% in the March quarter according to the data from Statistics New Zealand. It was a bigger growth than 0.4% predicted by economists and 0.1% registered in the previous three months. Yet some analysts pointed out that the annual growth slowed from 1.6% to 1.1%, and that was perhaps the reason why the seemly good report did not help the New Zealand currency.

NZD/USD fell from 0.7317 to 0.7266 as of 19:18 GMT today after rallying to 0.7343 intraday. NZD/JPY declined from 78.48 to 78.03 after touching the daily high of 78.77.

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