New Zealand CPI slowed to 0.5% qoq in Q4, down from 0.7% qoq, but beat expectation of 0.4% qoq. Annually, CPI accelerated to 1.9% yoy, up from 1.5% yoy, but missed expectation of 2.2% yoy. Transport cost was a main driver of quarterly inflation pickup, rose 2.1%. Recreation and culture rose 1.6%. Housing and household utilities rose 0.5%. On the other hand, food prices dropped -0.6%.

NZD/USD recovers mildly after the release but upside is so far limited. As long as 0.6665 minor resistance holds, corrective fall from 0.6755 might extend through 0.6851 temporary low. But considering bullish convergence condition in 4 hour MACD, downside should be contained by 38.2% retracement of 0.6203 to 0.6755 at 0.6544 to bring rebound. Break of 0.6665 should bring retest of 0.6755 high.

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