The New Zealand Dollar pushed higher yesterday supported by better than expected economic data out of China. The Kiwi has held on to these gains overnight and now awaits this morning’s local inflation data due out at 10.45am.
Chinese Data Boosts NZD and AUD
Yesterday’s data out of China was generally better than expected with both Retail Sales and Industrial Production beating market forecasts. GDP slowed to 6.2% from 6.4% in Q1 but was still in line with China’s target growth rate for the year of between 6.0 and 6.5%. The positive data boosted both the NZD and AUD and eased concerns of a global economic slowdown, for the time being.
All Eyes on NZ CPI
This morning’s quarterly NZ inflation data is expected to show an increase in CPI of 0.6% for Q2, and an annual rate of 1.7%, which are both in line with RBNZ estimates published in May. Any significant variation away from these numbers will move the NZD today, however the numbers are not expected to change the likelihood of a 0.25% rate cut by the RBNZ next month.
Across the ditch we have the release of RBA meeting minutes, while in the U.S there will be focus on tonight’s Retail Sales and Industrial Production data for June.
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