Breaking: NZ CPI sends Kiwi nearly 50 pips higher

New Zealand's Consumer Price Index is out as follows:

• NEW ZEALAND Q2 CONSUMER PRICE INDEX +1.3 PCT VS PVS QTR (REUTERS POLL +0.8 PCT)
•  NZ Q2 CONSUMER PRICE INDEX +3.3 PCT VS YEAR AGO (REUTERS POLL +2.8 PCT)
• NZ Q2 CONSUMER PRICE INDEX NON-TRADABLES +1.2 PCT VS PVS QTR
• NZ Q2 CONSUMER PRICE INDEX NON-TRADABLES +3.3 PCT VS YR AGO
• More to come...

NZD/USD update

The data has impacted the markets and NZD/USD is firmly bid by nearly 50 pips on the release as follows:

5-min chart

Daily chart

Meanwhile, the market is otherwise trapped on the daily chart and it will take more from the bulls to break into the highs. 

About the Consumer Price Index

Consumer Price Index released by the Statistics New Zealand is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services . The purchase power of NZD is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. A high reading is seen as positive (or bullish) for the NZD, while a low reading is seen as negative.