NZD/USD is directionless simply above recently’s cyclical low of 0.5683. New Zealand Q3 CPI was combined, BBH FX experts report.
RBNZ policy versatility keeps NZD under pressure
” Heading CPI increased a tick more than anticipated by 1.0% q/q vs. 0.9% in Q2 driven by residential or commercial property rates and associated services. Year-over-year, heading CPI matched agreement and RBNZ forecast at 3.0% (greatest considering that Q2 2024) vs. 2.7% in Q2. The biggest factors to the yearly inflation rate were all in the real estate and family energies group (electrical power, lease, and regional authority rates and payments).”
” More significantly, underlying inflation is within the RBNZ’s 1 to 3% target variety. That leaves space for the RBNZ to provide more cuts and is a headwind for NZD. The RBNZ sectoral aspect design printed for a 2nd successive quarter at 2.7% y/y and approximately core inflation determines stayed near 2.5% y/y in Q3.”
Source: FXstreet.
