New Zealand producer prices fell the quickest pace on record in Q1, reflecting soft inflationary pressures and posing no obstacle to lower interest rates.
PPI inputs fell 2.5% vs the previous quarter, much greater than the forecast of -0.2%. They were driven down by lower commodity prices.
PPI outputs fell more than expected, 1.4% vs the previous quarter, against a median forecast of +0.3%.
Expect NZD/USD to remain under pressure. There is also some switching this morning out of NZD and into AUD. Keeping the AUD/NZD cross bid on dips and lending a little suppor to the AUD/USD.
