RBNZ Q2 Sectoral Factor Model Inflation climbs by 4.8% YoY, Kiwi stays below 0.6200

Dhwani Mehta FXStreet

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

The gauge accelerated to 4.8% YoY in Q2 2022 vs. 4.6% seen in Q1 (revised sharply higher from 4.2%).

In early Asia, New Zealand’s Consumer Price Index (CPI) rose 1.7% QoQ in the second quarter, beating expectations of a 1.5% increase. Meanwhile, the annualized inflation surged to a 32-year high of 7.3% vs. 7.1% expected.

FX Implications

The Kiwi dollar is little moved on the RBNZ inflation gauge, as NZD/USD is consolidating the latest rally triggered by the above forecast Q2 CPI release.

At the time of writing, the kiwi is trading at 0.6188, up 0.49% 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	0.6188
Today Daily Change	0.0017
Today Daily Change %	0.28
Today daily open	0.6168

Trends
Daily SMA20	0.6214
Daily SMA50	0.6321
Daily SMA100	0.6553
Daily SMA200	0.6704

Levels
Previous Daily High	0.6177
Previous Daily Low	0.6083
Previous Weekly High	0.6193
Previous Weekly Low	0.6061
Previous Monthly High	0.6576
Previous Monthly Low	0.6197
Daily Fibonacci 38.2%	0.6141
Daily Fibonacci 61.8%	0.6119
Daily Pivot Point S1	0.6108
Daily Pivot Point S2	0.6049
Daily Pivot Point S3	0.6014
Daily Pivot Point R1	0.6202
Daily Pivot Point R2	0.6237
Daily Pivot Point R3	0.6296

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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