RBNZ Q4 Sectoral Factor Model Inflation Index rises by 1.8% YoY, Kiwi hits four-day highs

Dhwani Mehta FXStreet

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

NZD/USD

Overview
Today last price	0.6621
Today Daily Change	0.0021
Today Daily Change %	0.32
Today daily open	0.6599

Trends
Daily SMA20	0.6649
Daily SMA50	0.6572
Daily SMA100	0.6459
Daily SMA200	0.6512

Levels
Previous Daily High	0.661
Previous Daily Low	0.658
Previous Weekly High	0.6666
Previous Weekly Low	0.6584
Previous Monthly High	0.6756
Previous Monthly Low	0.6424
Daily Fibonacci 38.2%	0.6599
Daily Fibonacci 61.8%	0.6591
Daily Pivot Point S1	0.6583
Daily Pivot Point S2	0.6566
Daily Pivot Point S3	0.6553
Daily Pivot Point R1	0.6613
Daily Pivot Point R2	0.6626
Daily Pivot Point R3	0.6643

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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