Inflation Picks Up in New Zealand Too

CPI inflation increased by 1.8% in Q1 and by 4.2% YoY, which is way below inflation levels in the US and Europe

Written by: Skerdian Meta • Thursday, April 21, 2022 • 1 min read

• Last updated: Thursday, April 21, 2022

NZD traders now don't expect more hikes by the RBNZ

Inflation has been surging everywhere apart from China for some reason, which has forced central banks to turn hawkish and start hiking interest rates. The FED has raised rates by 25 basis points in the last meeting and is looking to increase them by 50 bps in the next meeting and probably in several meetings to follow, as they have let us know.

This has helped the USD turn quite bullish, although the Reserve Bank of New Zealand raised rates by 50 bps in the last meeting as inflation was increasing. Today’s CPI (consumer price index) inflation from New Zealand was expected to grow from 1.4% in Q4 of last year to 2.0% in Q1 of this year.

NZD/USD Daily Chart – The Price Has Moved Above the 50 SMA

Is NZD/USD resuming the uptrend?

NZD/USD turned bullish at the beginning of February, which lasted until the end of March, with moving averages doing a food job as support. This month the trend reversed and moving averages turned into resistance but yesterday we saw a strong bullish move, which pushed the price above the 50 SMA. Today’s CPI inflation

Q1 CPI Report from new Zealand

rbnz sector inflation 21 April 2022

NZD/USD Live Chart

NZD/USD

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.