New Zealand CPI rose 0.9% qoq in Q3, and beat expectation of 0.7% qoq. Annual rate accelerated to 1.9% yoy, up from 1.5% yoy in Q2, and beat expectation of 1.7% yoy. StatsNZ noted that the 1.9% annual increase in CPI was mainly due to the housing and household utilities group (3.1% yoy). The group was influenced by higher prices for construction, rents, local authority rates, electricity, and property maintenance services. though for the quarter, increases in fuel prices edged out housing. Transport prices rose 2.4% qoq, driven by petrol prices which is up 5.5% qoq.
Trimmed-mean CPI, which exclude extreme price movements – ranged from 1.8 to 1.9 percent for the year, which is roughly equivalent to the 1.9 percent overall rise in the CPI. CPI ex-petrol rose 1.2% yoy, CPI ex-food rose 2.3% yoy, CPI ex-household energy and vehicle fuels rose 0.9% yoy.
New Zealand Dollar is trading as the strongest one for today after the release.
AUD/NZD dives sharply after the release today. Break of 1.0845 support finally confirms resumption of the decline from 1.1174 and affirm the whole rise from 1.0486 is completed. Further fall is now expected to 61.8% projection of 1.1174 to 1.0845 from 1.0992 at 1.0789 and below. Strong support will likely be seen at 1.0656, which is close to 100% projection at 1.0663, to bring rebound.
