NZD/USD flows: Dragged by regional sentiment before RBNZ

TD joined the club to call for RBNZ hikes later this week, along with ANZ, citing the upward revision of 2yr household inflation to 3.2% from 3% would be an early indicator that the RBNZ would like to hike. However, this is not the number we believe would sway the RBNZ back into motion as this dat is a household survey, not the RBNZ forecast. For RBNZ to tighten again, we would first look for a significant upward revision in RBNZ's inflation forecast.

On Monday morning, the NZD/USD is being dragged by soft regional sentiment and is seen trading 0.44% lower at 0.6170.