The Reserve Bank of New Zealand (RBNZ) released its Sectoral Factor Model Inflation gauge for the first quarter of 2020, with the inflation gauge slowing down a bit from the fourth quarter of the last year.
The gauge rose by 1.7% YoY in Q1 2020 vs. +1.8% seen in Q4 2019.
About the RBNZ Sectoral Factor Model Inflation
The Reserve Bank of New Zealand has a set of models that produce core inflation estimates. The sectoral factor model estimates a measure of core inflation based on co-movements – the extent to which individual price series move together. It takes a sectoral approach , estimating core inflation based on two sets of prices: prices of tradable items, which are those either imported or exposed to international competition, and prices of non-tradable items, which are those produced domestically and not facing competition from imports.
The Kiwi dollar remains under pressure following the downtick in the RBNZ inflation gauge, as NZD/USD hovers near daily lows of 0.6009, at the time of writing. The spot loses 0.10% so far.
NZD/USD technical levels to watch