RBNZ Core Inflation Model rises by 1.8% YoY in Q4 2020, Kiwi breaches 0.72

The Reserve Bank of New Zealand (RBNZ) released its Sectoral Factor Model Inflation gauge for the fourth quarter of 2020 after NZ Stats released the official consumer price index (CPI) early Friday.

The gauge rose to 1.8% YoY in Q4. The inflation measures are closely watched by the RBNZ, which has a monetary policy goal of achieving 1% to 3% inflation.

About the RBNZ Sectoral Factor Model Inflation

The Reserve Bank of New Zealand has a set of models that produce core inflation estimates. The sectoral factor model estimates a measure of core inflation based on co-movements - the extent to which individual price series move together. It takes a sectoral approach , estimating core inflation based on two sets of prices: prices of tradable items, which are those either imported or exposed to international competition, and prices of non-tradable items, which are those produced domestically and not facing competition from imports.

FX Implications

The Kiwi dollar is running through fresh supply, as NZD/USD breaches the 0.7200 support. The spot drops 0.19% to trade at 0.7196, as of writing.

NZD/USD Technical levels to watch


Today last price 0.7198
Today Daily Change 0.0000
Today Daily Change % 0.00
Today daily open 0.7203
Daily SMA20 0.716
Daily SMA50 0.7081
Daily SMA100 0.6873
Daily SMA200 0.6639
Previous Daily High 0.7224
Previous Daily Low 0.7168
Previous Weekly High 0.7241
Previous Weekly Low 0.7118
Previous Monthly High 0.7241
Previous Monthly Low 0.7002
Daily Fibonacci 38.2% 0.7203
Daily Fibonacci 61.8% 0.7189
Daily Pivot Point S1 0.7172
Daily Pivot Point S2 0.7142
Daily Pivot Point S3 0.7116
Daily Pivot Point R1 0.7228
Daily Pivot Point R2 0.7254
Daily Pivot Point R3 0.7284



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