The New Zealand dollar dipped today after a report showed that consumer price inflation stayed unchanged last quarter, while analysts expected it to accelerate. The currency is consolidating as of now after the initial drop.
The Consumer Price Index rose 0.3 percent in the September quarter of this year, at the same rate as in the previous quarter. Specialists predicted an increase by 0.5 percent. The major contributors to the price growth were housing and household utilities, while other sectors remained subdued.
The worse-than-expected data reinforced the outlook for stable monetary policy from the Reserve Bank of the New Zealand in the near term. It bodes ill for the New Zealand currency, which is likely to extend its losses without support of interest rate hike expectations.
NZD/USD edged down from 0.7928 to 0.7856 as of 4:18 GMT today. EUR/NZD advanced from 1.5951 to 1.6080. NZD/JPY slid from 84.94 to 84.30.
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