RBNZ Orr: There are some early signs that inflation is abating

RBNZ Governor Orr is speaking. The RBNZ raised rates by 50 basis points yesterday in New Zealand

• There are some early signs that inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term is abating
• Core inflation is still too high
• Expectations for inflation are elevated
• Some prices may spike due to the cyclone

The NZDUSD tried to extend above the 100 hour MA but the US session has seen price action above and below the MA level with lower highs. The price now trading at a new NY session low and looks toward the early European session low at 0.62108. The recent low for the NZDUSD reached 0.61929. The low for the day reached after the rate hike saw the pair reach 0.6197 just 4-5 pips from the low from last week.

Close risk is now the 100 hour MA after the break to a new NY session low. Stay below is more bearish.

See earlier post on the NZDUSD HERE