Forex News: NZ Dollar Rises On Strong New Zealand Q1

NZ Dollar Rises On Strong New Zealand Q1 CPI Data

(RTTNews) - The New Zealand dollar strengthened against other major currencies in the Asian session on Tuesday, as traders increased their bets in favor of interest rate hikes by the Reserve Bank of New Zealand (RBNZ) in the near future due to higher-than-expected New Zealand (NZ) Q1 Consumer Price Index (CPI) data.

According to the data, the NZ CPI increased by 0.9 percent, exceeding both the prior figure of 0.6 percent and predictions of 0.8 percent. Price pressures increased gradually by 3.1 percent annually, whereas a moderate growth rate of 2.9 percent was expected.

Meanwhile, traders remain cautious and optimistic for a resolution to the U.S.-Iran war, even as tensions between Washington and Tehran continue to simmer ahead of a potential ceasefire deadline.

U.S. President Trump indicated that he is unlikely to extend the truce with Iran if no agreement is reached before its expiry Wednesday evening, Washington time. He has also threatened to destroy Iran's power plants and bridges if the ceasefire lapses.

After the U.S. attacked and seized an Iranian-flagged cargo ship in the Gulf of Oman, Iran reversed its decision to reopen the Strait of Hormuz and refused new face-to-face talks with the U.S.

In the Asian trading today, the NZ dollar rose to nearly a 1-1/2-month high of 94.11 against the yen and nearly a 1-month high of 1.9903 against the euro, from yesterday's closing quotes of 93.81 and 1.9955, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 95.00 against the yen and 1.97 against the euro.

Against the U.S. and the Australian dollars, the kiwi advanced to a 4-day high of 0.5921 and a 5-day high of 1.2121 from Monday's closing quotes of 0.5906 and 1.2148, respectively. On the upside, 0.60 against the greenback and 1.19against the aussie are seen as the next resistance levels for the kiwi.

Looking ahead, German ZEW economic sentiment index for April is slated for release in the European session.

In the New York session, U.S. ADP weekly employment data and U.S. retail sales data for March, pending home sales data for March, business inventories for February and U.S. Redbook report are due to be released.

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