New Zealand’s PPI dropped a little in Q1 2016. This is confirmed by the official report released by the local statistical agency. Analysts assume that the Reserve Bank of New Zealand is going to stick to the policy of low interest rates in the near future.
The PPI dropped by 0.1% over the reporting period relative to the same period 12 months before, the report says. The previous reporting period showed a 0.2% decline. This leads us to believe that even though the PPI showed some weakness once again, the pace of this declined slowed down, Masterforex-V Academy experts say.
The PPI deflation is said to have no contradiction with the inflation expectations released earlier this week. Altogether, this backs the idea that the Reserve Bank of New Zealand is going to stick to the policy of low interest rates in the near future.
FOREX
Masterforex-V Academy reports that the likelihood of low interest rates by the RBNZ is pressing the New Zealand Dollar. To be more specific, NZDUSD is going down within the scope of a mid-term downtrend (which may turn into a long-term one), wave A/B of level Daily2.
There is a minor move inside of the mentioned one. This is wave a(C )/C inside the A/B. The key levels of support are represented by the 0.6714 low and MF pivot 0.6574 as well as 0.6700, 0.6634/16. Alternatively, a break above the top of the descending MF sloping channel and MF pivot 0.6841 is going to indicate the completion of the existing bearish tendency in the market of NZDUSD, Masterforex-V Academy experts say.
