RBNZ Q1 Sectoral Factor Model Inflation jumps by 4.2% YoY, Kiwi unfazed below 0.6800

Dhwani Mehta FXStreet

The Reserve Bank of New Zealand (RBNZ) released its Sectoral Factor Model Inflation gauge for the first quarter of 2022.

The gauge rose to 4.2% YoY in Q1 2022 vs. 3.8% seen in Q4 2021.

Earlier on, New Zealand’s Consumer Price Index (CPI) rose 1.8% QoQ in the first quarter but fell short of market expectations of a 2% increase.

FX Implications

The Kiwi dollar is little moved on the RBNZ inflation gauge, as NZD/USD is in a downside consolidation phase after taking a big hit on the below forecast Q1 CPI release.

At the time of writing, the kiwi is trading at 0.6780, down 0.33% on the day.

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 either imported or exposed to international competition, and prices of non-tradable items, which are those produced domestically and not facing competition from imports.

NZD/USD Technical levels to watch

NZD/USD

Overview
Today last price	0.6781
Today Daily Change	-0.0022
Today Daily Change %	-0.32
Today daily open	0.6804

Trends
Daily SMA20	0.6875
Daily SMA50	0.6818
Daily SMA100	0.6783
Daily SMA200	0.69

Levels
Previous Daily High	0.6814
Previous Daily Low	0.6728
Previous Weekly High	0.6902
Previous Weekly Low	0.6754
Previous Monthly High	0.6999
Previous Monthly Low	0.6728
Daily Fibonacci 38.2%	0.6781
Daily Fibonacci 61.8%	0.6761
Daily Pivot Point S1	0.675
Daily Pivot Point S2	0.6696
Daily Pivot Point S3	0.6664
Daily Pivot Point R1	0.6837
Daily Pivot Point R2	0.6869
Daily Pivot Point R3	0.6923

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.

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