RBNZ Survey: NZ inflation expectations fall sharply in Q2, Kiwi bulls unperturbed

Dhwani Mehta FXStreet

According to the latest Reserve Bank of New Zealand (RBNZ) survey, New Zealand's (NZ) both one and two-year inflation expectations plunged in the second quarter of 2020.

Business managers forecast annual inflation averaging 0.74% over the coming year vs. 1.88% previous.

Two-year inflation expectations, seen as the time frame when RBNZ policy action will filter through to prices, fell to 1.24% from 1.93% last. The last uptick was the first in six quarters.

Kiwi unfazed

The NZD bulls ignore the steep drop in the NZ inflation expectations for Q2, as NZD/USD trades comfortably above 0.6000, courtesy Chinese exports data surprise for April.

At the time of writing, the kiwi trades at 0.6020, up 0.22% and close to daily highs of 0.6026.

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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