Published at 03:36 (GMT) 19 Aug
RBNZ Q3 survey: 2-year inflation expectations falls to 2.23% from 2.36%. 1-year at 1.96% down from 2.08%.
On FX, RBNZ inflation expectations falling toward mid of 1-3% RBNZ inflation target. Kiwi lower at 0.8430-32 from 0.8435-36 on the lower RBNZ inflation survey. Eye break of morning lows of 0.8426. Then 2-month lows of 0.8407 and 0.8400 Options.
As Kiwi under pressure on the fall in Q2 PPI, then cut in surplus/growth outlook by Finmin Bill English for the Prefu. NZD/SGD big mover as well, as it falls below key 1.0500 handle to fresh 6-month lwos around 1.0490-00, lowest level since Feb 24 1.0480. Below the key 1.05-1.10 recent range.
A clear break of 1.0500 to see NZD/SGD in range of Parity-1.0500 level. Not surprised to see NZD/SGD at parity. A level where many local investors will be watching closely. Given interest from Private Banks, clients and property and investment, savings exposures. Good to watch.
USD/SGD at 1.2441-45, range of 1.2442 to 1.2455. Offers at 1.2480-00. Focus on GDT auction at 1200GMT, for any further dip in milk prices. Pressure on Fonterra milk payouts. WL
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