The New Zealand dollar slipped on Tuesday and underperformed its Australian peer after a surprisingly low reading on inflation juiced rate cut speculation, though most analysts still see steady policy in New Zealand for a long time to come.
The kiwi plumbed a session low of $0.8138 after data showed annual inflation slowed to just 0.8 percent in the third quarter, less than forecasts for 1.1 percent and below the RBNZ's target band of 1 to 3 pct. Versus its US counterpart, the kiwi traded at $0.8160, little changed on the day. Support lay around $0.8135, the 50 percent retracement of the kiwi's sharp rally in September.
The kiwi also underperformed its Aussie counterpart, which edged up to NZ$1.2570, having earlier hit a 2-1/2-week high of NZ$1.2599. Against the greenback, the Aussie stood at $1.0266 versus $1.0251 late in New York, nearing last Thursday's high of $1.0294 - a level likely to provide initial resistance.