NZ Dollar Higher On Strong Core Inflation Reading
17 July 2018 - 1:51PM
RTTF2
The New Zealand dollar climbed against its major counterparts in
the Asian session on Tuesday, as a data showed that nation's core
inflation measure accelerated to a 7-year high in the second
quarter.
Data from Statistics New Zealand showed that core inflation
improved to 1.7 percent on year in the second quarter of 2018, from
1.6 percent in the previous quarter.
Meanwhile, consumer inflation rose 0.4 percent on quarter, down
from expectations of 0.5 percent, which would have been unchanged
from the previous three months.
On a yearly basis, consumer prices climbed 1.5 percent - again
shy of forecasts for 1.6 percent but up from 1.1 percent in the
three months prior.
Data from the Real Estate Institute of New Zealand showed that
New Zealand's house prices increased in June from a year ago, while
sales declined.
The national median house price index climbed 5.7 percent
year-over-year to NZ$560,000 in June. Month-on-month, house prices
remained unchanged.
Asian stock markets were mixed, following the lackluster cues
overnight from Wall Street and the plunge in crude oil prices.
Investors are also cautious as they focus on the earnings and
production results of major companies due this week.
The kiwi advanced to a weekly high of 0.6841 against the
greenback, from Monday's closing value of 0.6777. If the kiwi
continues its rise, 0.70 is possibly seen as its next resistance
level.
The kiwi climbed to 76.86 against the yen, its strongest since
June 18. The kiwi is likely to find resistance around the 79.00
level.
The kiwi strengthened to a 6-day high of 1.0870 against the
aussie and near a 3-week high of 1.7132 against the euro, from its
early low of 1.0970 and a 2-week low of 1.7324, respectively. The
next possible resistance for the kiwi is seen around 1.07 against
the aussie and 1.70 against the euro.
Looking ahead, U.K. ILO unemployment rate for three months ended
May and claimant count rate for June are due in the European
session.
In the New York session, U.S. industrial production for June and
NAHB housing market index for July, as well as Canada manufacturing
sales for May are scheduled for release.
At 10:00 am ET, the Fed Chairman Jerome Powell will testify
before the House Financial Services Committee.
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