NZD/USD remains higher after the lower than expected NZ inflaiton data

The inflation data from NZ came in lower than the market expected, and lower than the RBNZ had forecast:

• New Zealand Q2 CPI 0.4% q/q (expected 0.5%) & 3.3% y/y (expected 3.4%)

At least one bank has brought forward its forecast for an RBNZ rate cut in response:

• ANZ forecast an RBNZ interest rate cut in November (previously forecasting February 2025)

Despite this less hawkish news NZD has sustained its pop since the data:

I’m sure we’ll get some narrative to ‘explain’ this to us soon enough.

Don’t ask me, I’m just gonna say ‘more buyers than sellers’ and annoy everyone even more.

This article was written by Eamonn Sheridan at www.forexlive.com.