21 Jan 2015
NZD/JPY dropping down through 0.91 handle
FXStreet (Guatemala) - NZD/JPY is currently 90.70 with a high of 91.22 and a low of 90.54 and down 0.44% on the day.
NZD/JPY has plummeted through 90.80 support and has extended the losses from 0.9163 on the back of the Q4 CPI miss, that has fallen below the RBNZ's target band of between 1-3% year on year, arriving at 0.8% and missing expectations of 0.9% vs 1% previous.
Thus, the market will now need to think twice in respect of any possibility of a rate hike this year with deflation setting in, and in fact, consensus may begin to lean towards a more dovish tone from the Central Bank. What the Kiwi bulls need are a return of positive risk sentiment and an improvement in the commodities sector. Meanwhile, the BoJ are set up for this week and markets are broadly anticipating more of the same tone from the bank in respect of their monetary policy and easing campaign within QQE.
NZD/JPY has plummeted through 90.80 support and has extended the losses from 0.9163 on the back of the Q4 CPI miss, that has fallen below the RBNZ's target band of between 1-3% year on year, arriving at 0.8% and missing expectations of 0.9% vs 1% previous.
Thus, the market will now need to think twice in respect of any possibility of a rate hike this year with deflation setting in, and in fact, consensus may begin to lean towards a more dovish tone from the Central Bank. What the Kiwi bulls need are a return of positive risk sentiment and an improvement in the commodities sector. Meanwhile, the BoJ are set up for this week and markets are broadly anticipating more of the same tone from the bank in respect of their monetary policy and easing campaign within QQE.