The New Zealand dollar just spiked to a 3-month high

Photo: Getty Images.

The New Zealand dollar is surging in Asia, bolstered by a sharp increase in inflation expectations in data released by Reserve Bank of New Zealand on Tuesday.

The NZD/USD is now up 0.66% for the session, trading at .7366.

Here’s the 5-minute chart:

And the four-hour equivalent, revealing that the NZD/USD is now sitting at a fresh three-month high.

The move in the Kiwi followed the release of March quarter inflation expectations from the RBNZ.

Respondents said that they now expect year-ended consumer price inflation (CPI) to increase to 1.92% in two year’s time, up from 1.68% in the December quarter. Annual CPI growth looking a year ahead is also expected to increase to 1.56%, up from the 1.29% level seen in the prior survey.

Both figures are above the mid-point of the RBNZ’s 1-3% inflation target, and, at the margin, lessen the likelihood of further monetary policy easing given sentiment towards inflation often impacts consumption patterns and wage growth.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.