The outlook for the week ahead for the New Zealand dollar, brief remarks via KwiwBank:
- The week ahead we are picking a fairly broad range, to encompass some volatility, and we see 0.6100- 0.6350 as the likely range.
- The Fed will be a key driver as to which side of this range we end up. Also open to some volatility this week is the NZDAUD cross, with Aussie CPI data being released on Tuesday. With NZDAUD looking closer to the bottom of the current range, any dips below 0.9000 will see a break towards 0.8920/0.8950. Overall our pick is 0.8950 – 0.9100.
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I've posted a couple of previews of the FOMC:
- The two big US events this week are GDP data and the FOMC rate hike - Preview of both
- US FOMC meeting this week, +75bp no longer feels so significant
I'm yet to preview the Australian CPI data. Its due on Wednesday 27 July.
- This snapshot from the ForexLive economic data calendar, access it here.
- The times in the left-most column are GMT.
- The numbers in the right-most column are the 'prior' (previous month/quarter as the case may be) result. The number in the column next to that, where is a number, is the consensus median expected.
ps. The 'trimmed mean' in the pic above is a measure of core inflation. The RBA target band for core inflation is 2 to 3% over the course of a cycle (that's a summary of the target). The RBA is forecasting core inflation to drop back into the target band in 2023. I think you will find most people agree that RBA CPI forecasting is appallingly woeful.
