The New Zealand dollar dropped on Wednesday after domestic inflation data disappointed traders, increasing bets on an interest rate cut by the Reserve Bank of New Zealand.
Statistics New Zealand reported that the Consumer Price Index rose 0.1% in the March quarter of 2019 from the previous three months, the same as in the December quarter of 2018. Market participants were counting on a bigger increase of 0.3%. Year-on-year, the CPI rose 1.5%.
Yesterday, the GlobalDairyTrade Price Index showed an increase by 0.5%. The increase followed the 0.8% gain on the previous reporting period.
NZD/USD dropped from 0.6763 to 0.6727 as of 22:27 GMT today, reaching the low of 0.6665 intraday. EUR/NZD rallied from 1.6680 to 1.6786, and it daily high was at 1.6914. NZD/JPY declined from 75.73 to 75.37, while its session minimum was at 74.65.
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