Forex Asia Trading News- Strong PPI figures for New Zealand

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Producer Price Index figures for the first quarter of the year have been announced in Zealand. The outputs rise were not able to exceed the inputs. More specific the announced rate for the inputs showed a 2.2% increase which was significantly higher than the 0.6% market speculation and the 0.9% rate of the previous quarter. Similarly the Outputs also significantly exceed the expectations as the quarterly figure was at 1.7% while the market expected a 0.5 % rate and the previous quarter was at 0.2%. Following the announcement the New Zealand Dollar made some gains against the US Dollar but shortly after they were capped.

The Producer Price Index Input shows the rate of inflation experienced by producers while the Producer Price Index Output the price changes of goods produced by the producers . Usually high values are associated by hawkish currency behavior.