New Zealand Q2 CPI eases to 1.1% QoQ, NZD/USD marches to 0.6300

Anil Panchal FXStreet

The quarterly print of New Zealand’s (NZ) headline inflation, per the Consumer Price Index (CPI), released by the Statistics New Zealand, is out for the second quarter (Q2) of 2023 and is as follows:

New Zealand Q2 CPI 1.2% QoQ versus the expected 1.0% and 1.2% prior.
NZ CPI eases to 6.0% YoY compared to 5.9% market forecasts and 6.7% YoY prior.

Apart from the NZ CPI data, Statistics New Zealand also mentioned that the main drivers of the annual inflation were food and housing prices. "Non-tradeable inflation slowed to 6.6% on year, off a 20-year high of 6.8%," added the official update.

NZD/USD picks up bids

Following the better-than-forecast inflation data from New Zealand, the NZD/USD pair renews intraday high near the 0.6315 round figure while extending the previous day’s corrective bounce off a one-week low, as well as snap three-day downtrend. It should be noted, however, that the NZ CPI actually eased and hence defends the Reserve Bank of New Zealand's (RBNZ) latest status quo, which in turn prods the Kiwi pair buyers after an initial jump.

Ahead of the data, analysts at the ANZ said, “There’s likely to be some good news in the Q2 CPI report. Inflation seems to be well and truly on its way down, however it’s by no means ‘job done’ for the RBNZ.”

Also read: NZD/USD Price Analysis: Bears bail out ahead of CPI

About NZ CPI

With the Reserve Bank of New Zealand's (RBNZ) inflation target being around the midpoint of 2%, Statistics New Zealand’s quarterly Consumer Price Index (CPI) publication is of high significance. The trend in consumer prices tends to influence RBNZ’s interest rates decision, which in turn, heavily impacts the NZD valuation. Acceleration in inflation could lead to faster tightening of the rates by the RBNZ and vice-versa. Actual figures beating forecasts render NZD bullish.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

GBP/USD off highs, back to 1.3620

GBP/USD remains slightly on the defensive at the end of the week, receding to the low 1.3600s after hitting fresh tops past 1.3670 earlier in the day. Cable’s correction comes after two daily gains in a row and amid a tepid advance in the Greenback, while poor UK data also accompany the downside.

EUR/USD treads water below 1.1700

EUR/USD now trades with modest losses around 1.1670 following another unsuccessful atempt to advance past 1.1700 the figure in a convincing fashion. The pair’s decline follows a maginal rebound in the US Dollar as market participants continue to assess recent US data as well as developments from the US bond market.

Gold trims gains, recedes to the sub-$4,600 area

Gold rapidly leaves behind Thursday’s inconclusive price action and advances markedly on Friday, briefly surpassing the $4,600 mark per troy ounce to hit three-month peaks. Meanwhile, the precious metal’s solid performance comes despite marginal gains in the buck coupled with another day of rising US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP bulls accelerate rally amid rising ETF inflows

The cryptocurrency market remains bullish on Friday, led by Bitcoin’s surge above $77,000. Altcoins, including Ethereum and Ripple, mirror BTC’s positive outlook, trading near $2,400 and $1.35, respectively.

Week ahead – Fed’s Jackson Hole and Nvidia earnings to dictate markets

Kevin Warsh to make his Jackson Hole debut amid confusing messaging. But a major hawkish surprise unlikely after bond market intervention. Nvidia earnings to also determine market direction as stock rally cools.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.