FXStreet said the New Zealand dollar rose near $0.5600 against the U.S. dollar on Nov. 11, while linking lower oil prices to easing expectations for further increases by the Reserve Bank of New Zealand (RBNZ).
FXStreet put the kiwi’s previous-session loss above 0.5%. Twelve Data’s daily history showed a 0.4494% close-to-close decline for Nov. 10. Separately, Reuters reported a 0.59% drop to $0.5597 after U.S. inflation data in a story carried by Business Recorder. The reports reflect different snapshots and comparison periods.
On Oct. 28, the RBNZ kept its official cash rate (OCR) at 2.75%. Four committee members voted to hold, while three favored a 25-basis-point increase to 3%. The committee said further tightening was likely to be needed, depending on the economic outlook. EconoTimes previously covered the kiwi’s decline after the rate hold.
Annual inflation slowed to 3.7% in the September quarter from 4.1% in June, remaining above the RBNZ’s 1% to 3% target band. The bank projected inflation would reach 4.4% in the December quarter, based largely on fuel futures available when it made the forecast. It said volatile oil and refined-fuel prices made the near-term outlook uncertain. CME Group reported that West Texas Intermediate crude fell for the sixth time in seven sessions on Nov. 10.
The RBNZ said elevated commodity prices, strong export volumes and visitor arrivals benefited export-exposed households and businesses. It also said weak household consumption and higher prices weighed on domestic demand and real purchasing power. The bank linked higher fuel prices to inflation and domestic input costs.
The U.S. Bureau of Labor Statistics (BLS) said the Consumer Price Index rose 0.4% from September to October, after a 0.6% increase the previous month. The index excluding food and energy rose 0.3%. Before the release, Federal Reserve Gov. Christopher Waller said he would support a 25-basis-point increase at the Federal Open Market Committee’s December meeting. CME Group’s Nov. 10 commentary put the probability of an increase at 85.3%.
The RBNZ’s next OCR decision is scheduled for Dec. 8 at 8 p.m. ET (Dec. 9 at 2 p.m. New Zealand time). The next U.S. CPI release is scheduled for Dec. 10 at 8:30 a.m. ET.
