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Kiwi drops after Q2 CPI data

On Monday, the New Zealand dollar traded lower during Asia trade, following a poorer than expected consumer price data, which widened the scope for a lower official cash rate in the nearer future.       

The currency pair NZD/USD was worth 0.7083, dipping 0.51% after the CPI data.

New Zealand’s second quarter CPI was 0.4% for the quarter-on-quarter as well as year-on-year figures. below the 0.5% revenue observed  for both periods. As for the next rate review by the RBNZ, it’s scheduled on August 11, although the major bank policymakers might be concerned by the continued surge in house-related inflation and hold steady at 2.25%.

On Thursday, the RBNZ is going to release an updated economic assessment and the market is supposed to lift bets for a 25 basis-point cut in August from a currently elevated 70% chance priced in before the data.

Elsewhere, the currency pair USD/JPY surged 0.83%, hitting 105.75, while AUD/USD was worth 0.7586, up 0.08%. Meanwhile, GBP/USD hit 1.3256, showing a 0.57% rise.

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