Investing.com – The New Zealand dollar tumbled to a five day low against its U.S. counterpart on Thursday, after fourth-quarter inflation data added to the view that the country’s central bank would keep interest rates on hold in the near term.
NZD/USD hit 0.7622 during late Asian trade, the pair’s lowest since January 13; the pair subsequently consolidated at 0.7638, shedding 0.63%.
The pair was likely to find support at 0.7561, the low of January 12 and resistance at 0.7685, the day’s high.
Earlier Thursday, Statistics New Zealand said the consumer price index rose in line with expectations in the fourth quarter, rising 2.3%. Year-on-year CPI rose 4.0%.
However, the report said the rise was largely due to an increase in the Goods and Services Tax on October 1, to 15%, from 12.5%.
In addition, disappointing earnings from big U.S. banks, including Goldman Sachs, and Wednesday’s weak U.S. housing data continued to weigh on risk appetite.
The kiwi was also down against the euro, with EUR/NZD rising 0.36% to hit 1.7586.
Later in the day, New Zealand was to release official data on retail sales. The U.S. was to publish a weekly report on jobless claims, as well as official data on existing home sales and a report on manufacturing activity in Philadelphia.
NZD/USD hit 0.7622 during late Asian trade, the pair’s lowest since January 13; the pair subsequently consolidated at 0.7638, shedding 0.63%.
The pair was likely to find support at 0.7561, the low of January 12 and resistance at 0.7685, the day’s high.
Earlier Thursday, Statistics New Zealand said the consumer price index rose in line with expectations in the fourth quarter, rising 2.3%. Year-on-year CPI rose 4.0%.
However, the report said the rise was largely due to an increase in the Goods and Services Tax on October 1, to 15%, from 12.5%.
In addition, disappointing earnings from big U.S. banks, including Goldman Sachs, and Wednesday’s weak U.S. housing data continued to weigh on risk appetite.
The kiwi was also down against the euro, with EUR/NZD rising 0.36% to hit 1.7586.
Later in the day, New Zealand was to release official data on retail sales. The U.S. was to publish a weekly report on jobless claims, as well as official data on existing home sales and a report on manufacturing activity in Philadelphia.