New Zealand’s quarterly Consumer Price Index (CPI) is released at 22:45 UTC on July 20, making inflation the headline focus for the New Zealand dollar as the Asia-Pacific session opens.
What the CPI q/q release measures
The CPI q/q figure tracks the change in the price of a basket of goods and services purchased by households over the quarter. It is the most closely watched inflation gauge in New Zealand because it feeds directly into how the Reserve Bank of New Zealand assesses price stability and calibrates monetary policy.
Markets follow the release because inflation trends shape rate expectations, and shifts in those expectations tend to be reflected across NZD-denominated instruments. The forecast stands at 1.5%, up from the previous reading of 0.9%, so the print will be measured against that consensus.
How the NZD pairs are trading
Ahead of the release, the New Zealand dollar is softer across most crosses on our feed. NZDSGD leads the moves, down 0.33% at 0.75173, followed by NZDCAD off 0.21% at 0.81706.
NZDJPY and NZDUSD are each lower by 0.16%, trading at 94.71 and 0.58306 respectively. On the other side, EURNZD and GBPNZD are both up 0.12%, at 1.95962 and 2.30543, reflecting the euro and pound gaining marginally against the kiwi.
These levels describe how the affected instruments stand as the data approaches, not a projection of where they head next.
The CPI q/q number is watched as a read on New Zealand’s underlying inflation momentum and its potential relevance to the RBNZ’s policy assessment.
Descriptive market news from the ForexBullion Research Team. Not investment advice.
