We had NZ data earlier, pointing to continued RBNZ rate cuts:
- New Zealand Q3 CPI 0.6% q/q (expected 0.7%) & 2.2% y/y (expected 2.2%)
- RBNZ's Silk says confident inflation will converge to 2% target midpoint in medium term
NZD/USD has continued to slide after that data. AUD dropping also.
Am I going to get sent to the naughty corner if I suggest the two are being pummelled because it looks likely that the Federal Reserve is NOT going to be cutting aggressively ahead ....?
Other factors also (RBNZ will cut aggressively at its November meeting, at least 50bp ... RBA is not too far away from cutting, February probably), but I reckon that might be a biggie.
