Kiwi Extends Decline For Fourth Consecutive Day; Inflation Remains Outside RBNZ Target Range

Published on Jul 19, 2023 11:40

The New Zealand dollar dropped lower after a brief spike during Asian hours on Wednesday as domestic inflation data showed an easing trend although the figure remained outside the RBNZ`s target range of 1 to 3% and reinforced the view that the central bank will stay hawkish on interest rates for some time. Meanwhile, an uptick in dollar overseas is also keeping the kiwi under pressure. NZDUSD is currently seen trading at 0.6255, down 0.4% on the day and is extending decline for the fourth day in a row. Consumer prices in NZ rose 6.0 percent on year in the second quarter of 2023, Statistics New Zealand said, down from 6.7 percent in the previous three months. On a seasonally adjusted quarterly basis, inflation rose 1.1 percent, easing from 1.2 percent in the three months prior. Meanwhile, the dollar index that measures the greenback against a basket of currencies fell to April 2022 lows below 100 mark last week and is currently quoting at 99.73, up 0.1% on the day. Next week`s FOMC statement is expected to throw further clarity on the onward Federal stance.