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Tuesday, October 15, 2013

New Zealand CPI q/q - Tradable Indicator.

New Zealand CPI q/q is Change in the price of goods and services purchased by consumers;
 Released quarterly about 18 days after the about 18 days after the quarter ends;
 This is extremely late relative to inflation data from other countries, but it's the primary gauge of consumer prices and tends to create hefty market impacts.

 Why Traders Care
Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate; The average price of various goods and services are sampled and then compared to the previous sampling nevertheless it is coming up 5:45pm NY time  (Tuesday, October).

How To Trade New Zealand CPI q/q

Traded pair Expected figure Deviation trigger

NZDUSD 0.9 (%) ±0.4 (%)

Buy NZDUSD if actual figure is or is above 1.3 (%)

Sell NZDUSD if actual figure is or is below 0.5 (%)

Expected move during first 30 minutes after the release is 40 pips or more.


 New Zealand CPI q/q  will be next release on Jan 20, 2014

Enjoy your pips.


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