NZD: Markets increase their dovish bets to -60bp – DBS
|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.
CPI puts pressure on NZD
“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.”
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