The New Zealand dollar fell sharply and weakened against the green back after consumer prices slumped in the fourth quarter. The pair shed its loss earlier in today’s trading session but later fell before the days end. Earlier Wednesday, Statistics New Zealand reported that consumer price inflation fell 0.2% in the fourth quarter, compared to expectations for a flat reading, after a 0.3% rise in the three months to September.
The data came a day after the New Zealand Institute of Economic Research said its business confidence index rose to 23 in the fourth quarter from a reading of 19 in the three months to September.
Intraday bias remains on the downside as 21 and 55 EMA are crossed southward on the 1 hour, 4 hours, daily and weekly time-frames signalling a strong continuation of the downtrend. SSRC, MACD and RSI oscillators are also showing more bearish momentum is expected. Am expecting more drop to 0.7480 support