Asia Summary and Highlights 21 July
NZ Q2 Q2 jumps to 4.1%
But RBNZ's own inflation model see Q2 2026 at 2.7% y/y
Asia Session
The red hot New Zealand Q2 CPI has supported the Kiwi. Arriving at 4.1% y/y, it beats most estimate and once again overshoots RBNZ's target range. Energy is the dominating factor that accounted for 1.2% y/y growth. In RBNZ's own sectoral factor model, they are seeing Q2 inflation at 2.7% y/y only. NZD/USD is still trading 0.46% higher at 0.5865. Market participants remain hopeful as mediators are persuading U.S.-Iran to back to the deal. Major equity indexes are upbeat and see AUD/USD trading 0.17%, supported by previous metal performance while USD/CAD rises 0.02% on softer oil prices.
Else, USD/JPY and EUR/USD is little changed by less than 0.05% and GBP/USD up 0.13%.