2016-10-18 11:46:33

At Tuesday’s Asian session the NZD has grown in the market after the release of important New Zealand’s macro-economic statistics, which showed that consumer price in Q3 had increased by 0.2% (against the forecast of +0.0%). This data has lowered expectations of the interest rate cut by the Central Bank of the country and supported the New Zealand’s currency.

Meanwhile, the American dollar is declining in the market. Traders continue to take profit in the long positions after significant growth in the USD last week. The USD index WSJ, which shows the positions of the USD against a basket of 16 major currencies, has dropped by 0.19%, to 88.10. Strong US macro-economic data of the last week has increased investors ' expectations of the interest rate hike at the end of this year.

Today after 17:00 (GMT+3), price index of dairy products will be released, which may increase volatility in the NZD. The auction conducted in the two past weeks showed the decline in dairy products prices. Global Dairy Trade price index for dairy products has dropped by 3.0%. Note that the main item of the country's exports is the milk powder. Another surge of decline in dairy products prices will add pressure on the NZD.

Today at 15:30 GMT+3 US inflation statistics for September will become known (consumer prices indices). If the indices are positive, the USD will strengthen again and buy positions on the USD will grow in anticipation of the interest rate hike in the USA by the end of the year.

According to CME Group's, probability of the rate hike in December is about 69%.

In this regard, it is worth noting the comments made by the Vice-Chairman of the fed Stanley Fischer yesterday. Mr. Fischer expressed concerns that low interest rates can make the American economy vulnerable.NZD/USD: New Zealand’s consumer price index has grown.  Fundamental analysis for 18/10/2016