From the FXWW Chatroom: New Zealand Q3 CPI has beaten expectations (0.2% q/q vs. 0.0% expected). Heading into the release, the market was pricing an 85% probability of a 25bp rate cut at the RBNZ’s next meeting on 10 November. NZDUSD has bounced following the better data, breaking above its 100dma at 0.7172. However, we note this release was in line with what the RBNZ themselves were forecasting and following recent commentary from Assistant Governor McDermott suggests a cut at the 10 November meeting is still likely. In Australia, the RBA released minutes from their October meeting were released and Governor Philip Lowe gave a speech where he defended the flexibility of the RBA inflation target. The minutes do not suggest the RBA are likely to ease this year, however they leave the door open for a potential move in Q1 or Q2 next year depending on how inflation evolves. In Japan, we published a piece on our interpretation of the BoJ’s yield curve targeting regime.
View the latest market information in the FXWW Chatroom with a free trial