Key events for the Antipodeans: RBNZ to cut? – Scotiabank

By FXStreet FXStreet (Guatemala) – Analysts at Scotiabank explained the key events for the Antipodeans this week.

Key Quotes:

“Australian CPI inflation for Q3 is expected to rise to 1.8% y/y from 1.5% in Q2. That would make it the first back-to-back increases in Australian inflation since before mid-2014 at which point inflation swooned in response to the plunge in global commodity prices. Consensus doesn’t believe this will be the end of the upward pressures; forecasters expect Australian inflation to continue climbing over the next year.”

“The Reserve Bank of New Zealand is expected by most forecasters to keep its cash rate at 2.75% next Wednesday but a minority of economists think another cut could be in the works. That minority could well be proven right and they have recent guidance from the RBNZ to support their view. Recall that Governor Graeme Wheeler recently stated “Some further easing in the OCR seems likely, but this will continue to depend on the emerging flow of economic data.” That was back on October 13th. What has happened since? Inflation cooled to 0.3% q/q but ticked higher to a still soft 0.4% y/y.”
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Source:: FX Street