Investing.com – The New Zealand dollar tumbled from a three-year high against its U.S. counterpart on Monday, following a government report showing consumer price inflation rose less-than-expected in the first quarter.
NZD/USD retreated from 0.8004, the pair’s highest since April 23, 2008, to hit 0.7931 during late Asian trade, tumbling 0.79%.
The pair was likely to find support at 0.7863, last Thursday’s low and resistance at 0.8004, the day’s high.
Earlier in the day, Statistics New Zealand said the consumer price index rose 0.8% in the three months ended March 31, after surging by 2.7% in the previous quarter. Analysts had expected CPI to rise by 1.0% in the first quarter.
Year-on-year, CPI increased 4.5%, the fastest pace since July-September 2008, when it rose 5.1%, and faster than a rise of 4.0% in the last quarter of 2010. Analysts had expected CPI to increase at an annualized rate of 4.7%.
The report said the rise in the CPI was driven mainly by higher fuel prices and an increase in cigarette and tobacco prices due to an excise duty that took effect on January 1.
The kiwi was also sharply lower against the yen, with NZD/JPY falling 1.04% to hit 65.78.
Later in the day, U.S. Federal Reserve Bank of Dallas President Richard Fisher was due to speak in Atlanta.
NZD/USD retreated from 0.8004, the pair’s highest since April 23, 2008, to hit 0.7931 during late Asian trade, tumbling 0.79%.
The pair was likely to find support at 0.7863, last Thursday’s low and resistance at 0.8004, the day’s high.
Earlier in the day, Statistics New Zealand said the consumer price index rose 0.8% in the three months ended March 31, after surging by 2.7% in the previous quarter. Analysts had expected CPI to rise by 1.0% in the first quarter.
Year-on-year, CPI increased 4.5%, the fastest pace since July-September 2008, when it rose 5.1%, and faster than a rise of 4.0% in the last quarter of 2010. Analysts had expected CPI to increase at an annualized rate of 4.7%.
The report said the rise in the CPI was driven mainly by higher fuel prices and an increase in cigarette and tobacco prices due to an excise duty that took effect on January 1.
The kiwi was also sharply lower against the yen, with NZD/JPY falling 1.04% to hit 65.78.
Later in the day, U.S. Federal Reserve Bank of Dallas President Richard Fisher was due to speak in Atlanta.