The New Zealand dollar dropped sharply against its U.S. counterpart on Thursday, weighed by the release of softer than expected inflation data from New Zealand. Statistics New Zealand reported earlier that consumer price inflation rose 0.3% in the third quarter, confounding expectations for an increase of 0.5%, after a 0.3% advance in the three months to June.The data fuelled speculation that the Reserve Bank of New Zealand could delay any potential rate hikes.
Intra-day bias remains on the downside as 21 and 55 ema’s are crossed downward. Also SSRC, MACD and RSI oscillators are showing more bearish momentum. Am expecting further decline to 0.77547 in the medium term picture.