RBNZ highly sensitive to Q3 inflation print - BNPP

Research Team at BNP Paribas, suggests that in the commodity bloc, the focus this week will be on New Zealand’s release of Q3 CPI (Tuesday).

Key Quotes

“Reserve Bank of New Zealand (RBNZ) Assistant Governor John McDermott recently stated that continued low inflation would cement the case for further easing and a cut at the 10 November meeting is now 85% priced in. Given that a rate cut is almost fully priced, NZDUSD has scope to bounce if inflation surprises to the upside. Wednesday brings the release of Australia September employment data.”