{"id":114942,"date":"2017-10-18T09:15:07","date_gmt":"2017-10-18T13:15:07","guid":{"rendered":"http:\/\/countingpips.com\/?p=114942"},"modified":"2018-06-01T15:55:32","modified_gmt":"2018-06-01T15:55:32","slug":"nzdusd-forex-technical-analysis-rise-of-inflation-increases-likelihood-of-rate-hike","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/10\/nzdusd-forex-technical-analysis-rise-of-inflation-increases-likelihood-of-rate-hike\/","title":{"rendered":"NZDUSD: Forex Technical Analysis – Rise of inflation increases likelihood of rate hike"},"content":{"rendered":"
October 18, 2017<\/div>
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By IFCMarkets<\/a><\/p>\n

Rise of inflation increases the likelihood of a rate hike<\/strong><\/p>\n

The rise of inflation in New Zealand in the 3rd quarter of 2017 exceeded forecasts. Will the prices of the New Zealand dollar<\/a> grow?<\/p>\n

The increase in the consumer price index was 1.9% year-over-year. This is more than the indicator of the 2nd quarter ( 1.7%), and the forecast of the Reserve Bank of New Zealand (RBNZ) ( 1.6%). In spite of the fact that inflation still remains in the target range of 2% plus-minus 1%, the probability of the RBNZ rate hike is increasing. Currently, it is at the historical minimum and is 1.75%. This year, the last meeting of the RBNZ will be held on November 8. The possible rate hike contributes to the strengthening of the exchange rate. An additional positive factor for the New Zealand dollar may be the formation of the government according to the results of the parliamentary elections on September 23, 2017. None of the two leading political forces (the National and Workers’ Parties) was able to obtain the absolute majority in the New Zealand Parliament, which is necessary to form the government of the country. Now they have created coalitions with smaller parties, which will allow forming the government and reduce political risks. The next significant economic information in New Zealand will be published on October 26, 2017 – the foreign trade balance for September.<\/p>\n

\"NZDUSD\"<\/p>\n

On the daily timeframe, NZDUSD: D1<\/b> exceeded the 200-day moving average line and shows a tendency to increase. A number of technical indicators formed signals to rise. At the same time, it continues to remain in the medium-term downward channel. The further price increase is possible in case of the deterioration of the US economy and good economic data in New Zealand.<\/p>\n