NZD after the inflation data ... No soup for you!

The New Zealand dollar has lost a little more ground after its immediate drop on the inflation data

• NZ Q4 CPI: 0.1% q/q (expected 0.4%)

A huge below expected and below prior result, far below

The currency was marked lower immediately, and has continued to slip a little more

A 1 minute candle chart (free FX charts available at ForexLive here):

'Underlying' inflation did not contribute much to the headline result, it remains subdued. Cheaper prices for imports (lower tradeable inflation) also a contributor to the soft result

Prior to the release the RBNZ was pretty much in 'wait and see' mode, with no urgency to lift the cash rate. There will be even less, much less, after this result. The RBNZ inflation targt band is 1 to 3% y/y ... the y/y was 1.9% in Q3 but has dropped to 1.6% y/y with today's figures.