RBNZ Sectoral Factor Inflation Model arrives at 3.1% YoY in Q4 2024

Dhwani Mehta FXStreet

The Reserve Bank of New Zealand (RBNZ) published its Sectoral Factor Model Inflation gauge for the fourth quarter of 2024, following the release of the official Consumer Price Index (CPI) by the NZ Stats early Wednesday.

The inflation measure extends its downtrend to 3.1% year-over-year (YoY) in Q4 2024 vs. 3.4% in Q3.

The inflation measures are closely watched by the RBNZ, which has a monetary policy goal of achieving 1% to 3% inflation.

FX implications

The Kiwi Dollar sees a fresh selling wave after the RBNZ’s inflation data. At the time of writing, NZD/USD is down 0.44% on the day to hit intraday lows near 0.5650.

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.

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.

EUR/USD sticks to daily gains above 1.1700

EUR/USD is holding its ground above 1.1700 the figure on Thursday, reversing Wednesday’s modest pullback. The pair is finding some support from an improved market mood, helped by easing EU–US trade tensions, while investors keep assessing the latest round of US data releases.

GBP/USD recovers above 1.3400 as mood improves

Following a two-day rally, GBP/USD lost its traction and closed in negative territory on Wednesday after mixed UK inflation data. The pair stays relatively quiet on Thursday and fluctuates in a tight channel above 1.3400 ahead of PCE inflation and Jobless Claims data from the US.

Gold holds above $4,800 after Trump's U-turn on Greenland

Gold stabilizes above $4,800 early Thursday following a sharp decline seen during the Asian session. The global risk sentiment gets a strong boost in reaction to US President Donald Trump's U-turn on Greenland and easing geopolitical tensions, capping XAU/USD's upside.

Crypto Today: Bitcoin, Ethereum, XRP post modest gains as ETF selling pressure intensifies

Bitcoin rises marginally above $90,000, but intense ETF selling pressure continues to weigh on the asset. Ethereum trades around $3,000 amid broader crypto market volatility and waning institutional interest. XRP ticks up for the second consecutive day despite subdued retail demand.

Trump walks back NATO tariffs, signals de-escalation

What began as a sharp escalation risk quickly turned into a de-escalation signal. Earlier this week, markets briefly priced in escalation risk after Donald J. Trump proposed a 10% tariff hike on eight NATO nations amid the Greenland dispute.

Axie Infinity extends gains as bullish momentum targets $3

Axie Infinity (AXS) extends its gains by 8%, trading above $2.56 at the time of writing on Thursday, after rallying over 37% this week. The bullish price action is further strengthened by rising whale accumulation volume.