NZ Dollar Falls On Soft Inflation Data

(RTTNews) - The New Zealand dollar weakened against other major currencies in the Asian session on Tuesday, after data showed that the consumer prices in New Zealand rose less-than-expected on year in the third quarter of 2023.

Data from Statistics New Zealand showed that the consumer prices in New Zealand were up 5.6 percent on year in the third quarter of 2023. That was beneath expectations for 5.9 percent and down from 6.0 percent in the three months prior.

On a seasonally adjusted quarterly basis, inflation rose 1.8 percent, again below forecasts for 2.0 percent but up sharply from 1.1 percent in the second quarter.

In the Asian trading now, the NZ dollar fell to nearly a 3-week low of 1.0771 against the Australian dollar and more than a 3-week low of 1.7902 against the euro, from yesterday's closing quotes of 1.0698 and 1.7810, respectively. If the kiwi extends its downtrend, it is likely to find support around 1.09 against the aussie and 1.82 against the euro.

Against the U.S. dollar and the yen, the kiwi edged down to 0.5896 and 88.19, 0.5927 and 88.61 from yesterday's closing values of respectively. The kiwi may test support near 0.57 against the greenback and 86.00 against the yen.

Looking ahead, U.K. jobs data for September is due to be released at 2:00 am ET.

In the European session, Eurozone ZEW economic sentiment index for October is slated for release.

In the New York session, Canada housing starts for September, inflation data for September, retail sales data for September, U.S. industrial and manufacturing production for September, business inventories for August, U.S. NAHB housing market index for October and U.S. Federal budget balance report for September are set to be published.