The NZDUSD proved to be one of the better performers yesterday. From its weekly open of .7339, the pair climbed steadily all through the day, topping out at .7400. The rally looks like it could go further, but please do watch out the previous week high at .7442 as this is a major area of interest.
No important economic data was released yesterday but we will see New Zealand’s measure of inflation, the consumer price index (CPI), at 9:45 pm GMT today. Unlike most CPI reports from other major economies, New Zealand’s CPI is measured on a quarterly basis. The expectation is a 0.0% reading for the final quarter of last year, down from the 1.3% seen during the third quarter.
A rising CPI is traditionally seen as bullish for the domestic currency because it could lead for the country’s central bank to hike rates in the future. With that said, a better-than-expected actual results could give currency traders another chance to buy up the NZDUSD.