New Zealand Inflation Drop Quickens

This week has seen lower-than-expected inflation data in New Zealand and Canada, while British inflation remained stubbornly high.



  1. New Zealand CPI (inflation) data released a few hours ago showed a surprise drop in the quarterly rate from 1.4% to 1.2%, when a rise to 1.5% had been widely expected. This places the annualized rate at 6.7%. The New Zealand Dollar weakened following the release as it suggests a more dovish tilt could be forthcoming from the RBNZ, with the NZD/USD currency pair now trading at a 1-month low price.
  2. Several soft commodities are performing well, with the Sugar ETF CANE and the Cocoa ETN NIB reaching new multi-year high prices, while the Coffee ETF JO has also made a strong bullish breakout.
  3. In the Forex market, the US Dollar has firmed against its long-term bearish trend, boosted by rising short-term US Treasury yields. Trend traders may be watching for a new short trade if confirmed by a renewed weakening in the greenback, probably looking to be long of the EUR/USD or GBP/USD currency pairs, both of which are in confirmed long-term bullish trends. Over today’s Asian session, the Euro looked like the strongest major currency, while the New Zealand Dollar was the weakest.
  4. US Federal Reserve member Williams said that the Fed will act to bring down overly high inflation, estimates it will take 2 years to get CPI down to the 2% target.
  5. Bitcoin made a decisive bearish rejection of the $30k area.
  6. British CPI (inflation) data released yesterday showed annualized inflation falling from 10.4% to 10.1%, slightly higher than the 9.8% which was the consensus forecast.
  7. Today will see a release of US Unemployment Claims data.
  8. The Governor of the Bank of Canada will be testifying today before Parliament about banking, commerce, and the economy.
Buka akaun dagangan patuh syariah anda di Weltrade.
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