The New Zealand third-quarter CPI came in line with consensus that added pressure to the New Zealand Dollar (NZD) overnight, ING’s FX analyst Francesco Pesole notes.
“In New Zealand, third-quarter CPI came in line with consensus: 2.2% YoY for headline and 4.9% YoY for non-tradable inflation.”
“That still added pressure to NZD overnight, as markets increased their dovish bets to -60bp for the 27 November Reserve Bank of New Zealand meeting.”
“Admittedly, a 50bp cut is looking more likely with non-tradable CPI back below 5.0%, but 75bp would probably require a dovish repricing in the Fed expectations too.”