It has been a bad start to the session for the NZD/USD after a big CPI miss has seen price tank sharply.

CPI came in at 0.1% q/q which was well below the expected 0.3% q/q and inline with the prior 0.1%.

The annual rate came in at 1.5% y/y with the expected 1.7% y/y and prior of 1.9%.

The NZD/USD has fallen sharply and crashed its way through support at 0.6700.

The RBNZ has not been paying much attention to the CPI figures but now it is really going to be forced to. The reality is now that an interest rate cut is very much on the agenda. With inflation at 1.5% for the year, that is realistically half of what the RBNZ would like to see.

A bit of a shocker here today, so watch for downside ahead in the coming days. Price has taken out 0.6700 so watch for signs of selling below that level.