From New Zealand at 2245GMT:
CPI for Q2
For the q/q
- expected is +0.4%
- prior was +0.3%
For the y/y
- expected is +1.8%
- prior was +1.5%
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The next Reserve Bank of New Zealand monetary policy meeting and announcement is scheduled for July 24 (local NZ time). The OIS market is currently priced at a 91% probability of a 25 basis point rate hike. The CPI data today will be watched closely – if it comes in hotter than expected it will cement further the expectations for the next hike and might be enough to push the kiwi higher (though there are plenty of sellers hovering above 0.88. A weaker result, on the other hand should see they NZD below 0.8740 (where the stops are).
