Yesterday, New Zealand’s October–December CPI was announced at 2.2%, higher than the expected 2.1%, but the price increase was limited. The euro’s decline against the dollar led to selling of the NZD as well, causing it to drop to 87.98. However, with stock prices rising in Japan, the US, and Europe, risk-on sentiment pushed the yen lower, and NZD/JPY rose to 88.79 in the New York market.
For tomorrow’s Bank of Japan meeting, the market has already priced in a 0.25% interest rate hike, limiting downside risk. More buying is expected before the meeting.
NZD/JPY Expected Range: 89.60–88.30
Note: The above information does not guarantee profits. Please make your own decisions when trading.