The New Zealand Dollar maintained its gains in overnight trading as stronger-than-expected CPI data pushed the Kiwi higher. Opening this morning at 0.6585, the New Zealand Dollar looks well supporting moving into Wednesday.
The NZD initially rose 0.7% immediately after the Q3 CPI data showed that inflation was on the rise. Core measures of inflation were relatively steady, averaging 1.8% but non-tradeable inflation was up 0.2%. The CPI reading adds to the GDP posting from last month and will give the RBNZ food for thought. While a rate hike is still unlikely, it does add a positive bias to the RBNZ’s thinking. The Kiwi took the news positively but faded after the initial move higher, settling just below the 0.6590 mark.
Across the Tasman, the Aussie failed to gain any ground in currency markets which saw the Kiwi appreciate a significant 0.5% against it. Opening this morning at 0.9230, the New Zealand Dollar hit its’ highest level since June.
There will be no key data releases due out today with the Kiwi looking for direction from off-shore forces.