NZD/USD flows: Soft CPI Forecast Giving Kiwi a Beating

The Kiwi has been beaten down on Wednesday Asia session, triggered by Westpac's downward forecast revision of Q4 CPI. Westpac cuts its New Zealand Q4 CPI forecast to 0.3% from 0.6%, which is read by market participants if such is the case, the RBNZ does not neccessarily have to keep rates higher for longer. The down move in the Kiwi is accelerated by sour regional sentiment. New Zealand government also removed full employment goal for Reserve Bank of New Zealand as they promised in election but should have limited impact towards current RBNZ's policy path.

The NZD/USD is down by 0.54% to 0.6100.