RBNZ Q4 Sectoral Factor Model Inflation Index rises by 1.8% YoY, Kiwi hits four-day highs
The Reserve Bank of New Zealand (RBNZ) released its Sectoral Factor Model Inflation gauge for the fourth quarter, having faced some technical glitch causing a small delay in its release time.
The gauge rose to 1.8% YoY in Q4 vs. 1.7% seen in Q3.
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 picking up fresh bids on the uptick in the RBNZ inflation gauge, as NZD/USD prints a new four-day high at 0.6622, at the time of writing. The spot trades 0.11% higher on the day.
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.
