Breaking: New Zealand Q4 CPI: YoY 1.9% / QoQ 0.5% (NZD bullish)

New Zealand fourth-quarter (Q4) Consumer Price Index has been released.

Consumer Price Q4 Index

NZ Q4 Consumer Price Index Non-Tradables +3.1 pct vs yr ago.
NZ Q4 Consumer Price Index +1.9 pct vs year ago (Reuters poll +1.8 pct), vs 1.5% prior.
New Zealand Q4 Consumer Price Index +0.5 pct vs pvs Q( Reuters poll +0.4 pct), vs 0.7% prior.
NZ Q4 consumer price index non-tradables +0.6 pct vs pvs Q.

Ahead of the data, analysts at ANZ bank explained that the key piece of information will be the non-tradable print.

Price analysis, before and after

Before: Price Analysis NZD/USD: CPI coming up, bulls look to 50% mean reversion, bears, 61.8% Fibo

After: NZD/USD has rallied on the better than expected data. The move has been surprisingly subdued, so far, with the QoQ below the prior reading, but the data reveals a likely positive for the bird going forward overall as markets will reduce pricing of an imminent rate cut from the Reserve Bank of New Zealand. The inflation data was higher than the Reserve Bank of New Zealand's (RBNZ) forecast a 0.2% rise in quarterly CPI. See below for the full story on NZD/USD and a 50% man reversion could be on the cards

Description

Consumer Price Index released by the Statistics New Zealand is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchase power of NZD is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. A high reading is seen as positive (or bullish) for the NZD, while a low reading is seen as negative.

NZD/USD implications

NZD/USD nears the weekly high of 0.6625 after New Zealand’s upbeat CPI