RBNZ Survey: NZ inflation expectations rise in Q4, Kiwi unmoved

Dhwani Mehta FXStreet

New Zealand's (NZ) inflation expectations rise across the time curve in the fourth quarter of 2022, the latest monetary conditions survey conducted by the Reserve Bank of New Zealand (RBNZ) showed on Tuesday.

Two-year inflation expectations, seen as the time frame when RBNZ policy action will filter through to prices, came in a tad lower at 3.62% from 3.07% previous.

NZ Q4 average one-year inflation expectations jumped to 5.08% vs. 4.86% seen in the third quarter of this year.

Kiwi unimpressed by inflation data

The acceleration in NZ inflation expectations failed to move the need around the New Zealand Dollar (NZD), leaving NZDUSD almost unchanged at around 0.5935.

The rising inflation expectations data revives hopes of a hawkish RBNZ rate hike next month.

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 weakens below 1.1650 as strong US data boosts Fed hold outlook

EUR/USD extends its losses for the third consecutive session, trading around 1.1640 during the Asian hours on Thursday. The pair loses ground as the US Dollar advances as a stronger-than-expected United States Producer Price Index and Retail Sales, along with last week’s easing Unemployment Rate, reinforced the case for the US Federal Reserve to keep interest rates on hold for the coming months.

GBP/USD holds above 1.3400 after UK GDP data

GBP/USD holds above 1.3400 in European trading, fading a spike to near 1.3450. The pair jumped on the upbeat UK growth and industrial data but failed to hold the uptick amid a broadly firmer US Dollar. The focus now turns to the mid-tier US data releases for further directives.

Gold remains near $4,600 due to Fed rate pause bets, easing tensions

Gold loses ground after hitting a fresh record high of $4,643 in the previous session, trading around $4,600. The non-interest-bearing Gold lost ground as a stronger-than-expected United States Producer Price Index and Retail Sales, along with last week’s easing Unemployment Rate, reinforced the case for the US Federal Reserve to keep interest rates on hold for the coming months.