NZ inflation expectations fall sharply in Q2, Kiwi bulls unperturbed
Fundamental Forex Analysis

NZ inflation expectations fall sharply in Q2, Kiwi bulls unperturbed

According to the latest Reserve Bank of New Zealand (RBNZ) survey, New Zealand’s (NZ) both one and two-year inflation expectations plunged in the second quarter of 2020.

Business managers forecast annual inflation averaging 0.74% over the coming year vs. 1.88% previous.

Two-year inflation expectations, seen as the time frame when RBNZ policy action will filter through to prices, fell to 1.24% from 1.93% last. The last uptick was the first in six quarters.

Kiwi unfazed

The NZD bulls ignore the steep drop in the NZ inflation expectations for Q2, as NZD/USD trades comfortably above 0.6000, courtesy Chinese exports data surprise for April.

At the time of writing, the kiwi trades at 0.6020, up 0.22% and close to daily highs of 0.6026.

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