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RBNZ Sectoral Factor Model Inflation steadies at +1.8% YoY in Q2

The Reserve Bank of New Zealand (RBNZ) is out with its Sectoral Factor Model Inflation Index for the second quarter, with the figures coming in at 1.8% YoY vs. 1.8% previous.

This data comes after the official New Zealand (NZ) CPI met the consensus forecasts.

Actual NZ Q2 CPI:  -0.5% QoQ vs. -0.5% expected (0.8% prior) and YoY at 1.5% vs. 1.5% expected (2.5% prior).

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 unfazed by the RBNZ inflation gauge, as NZD/USD trades close to the daily low of 0.6552, at the time of writing. The spot trades 0.17% lower on the day despite upbeat Australian jobs report and Chinese Q2 GDP data.

NZD/USD technical levels to watch

NZD/USD

Overview
Today last price0.6557
Today Daily Change-0.0015
Today Daily Change %-0.23
Today daily open0.6572
 
Trends
Daily SMA200.6496
Daily SMA500.635
Daily SMA1000.6195
Daily SMA2000.634
 
Levels
Previous Daily High0.6585
Previous Daily Low0.653
Previous Weekly High0.6601
Previous Weekly Low0.6519
Previous Monthly High0.6585
Previous Monthly Low0.6186
Daily Fibonacci 38.2%0.6564
Daily Fibonacci 61.8%0.6551
Daily Pivot Point S10.654
Daily Pivot Point S20.6507
Daily Pivot Point S30.6485
Daily Pivot Point R10.6595
Daily Pivot Point R20.6617
Daily Pivot Point R30.665

Author

Dhwani Mehta

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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