NZD/USD momentum fades as Q3 CPI data misses expectations, curbing RBNZ rate hike bets and stalling the currency's recent one-month high.
The NZD/USD pair's recent recovery momentum has faltered following the release of New Zealand's Q3 Consumer Price Index (CPI) data, which missed market expectations. According to Elias Haddad of Brown Brothers Harriman, this data print has tempered expectations for aggressive Reserve Bank of New Zealand (RBNZ) interest rate hikes, despite the persistence of underlying inflation pressures.
The recovery stalled because New Zealand's Q3 CPI data came in lower than expected, which limits the support for further RBNZ interest rate hikes.
While the headline Q3 CPI was below expectations, underlying inflation remains persistent.
The New Zealand Dollar's recent rally against the US Dollar faltered after Q3 inflation data missed forecasts. While underlying price pressures remain persistent, the softer headline CPI reading limits the scope for further aggressive interest rate hikes from the Reserve Bank of New Zealand.
The rally stalled because New Zealand's Q3 Consumer Price Index (CPI) came in lower than market expectations, reducing the likelihood of aggressive RBNZ interest rate hikes.