Two-year quarterly RBNZ inflation expectations fell in Q3, weighing on the New Zealand Dollar and extending its decline against the USD.
The New Zealand Dollar extended its losing streak to a fourth day, trading near 0.5840 against the USD in Asian hours. The decline followed a drop in two-year quarterly RBNZ inflation expectations for Q3, signaling easing price pressures.
Prior to the release, the NZD/USD pair had shown resilience but turned lower as inflation expectations moderated. The RBNZ’s survey had previously indicated higher expectations, contributing to a more hawkish monetary policy stance.
Markets are assessing the implications for RBNZ policy, with the softer inflation outlook potentially reducing urgency for further rate hikes.