RBNZ Q1 Sectoral Factor Model Inflation Index rises by 1.7% YoY, Kiwi keeps lows
The Reserve Bank of New Zealand (RBNZ) released its Sectoral Factor Model Inflation gauge for the first quarter of 2020, with the inflation gauge slowing down a bit from the fourth quarter of the last year.
The gauge rose by 1.7% YoY in Q1 2020 vs. +1.8% seen in Q4 2019.
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 remains under pressure following the downtick in the RBNZ inflation gauge, as NZD/USD hovers near daily lows of 0.6009, at the time of writing. The spot loses 0.10% so far.
NZD/USD technical levels to watch
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
