Last month, the Reserve Bank of New Zealand hiked interest rates for the fourth straight time to 3.5%. However, it also signalled a pause in further hikes over concerns that the currency level was too high and not in line with weakening commodity prices.
The inflation outlook will give a gauge of the percentage that business managers expect the price of goods and services to change annually over the next two years.
The previous quarter’s edition released in May gave a print of 2.4%, higher than the 2.3% expected in February’s survey. With the calendar light on macroeconomic data and a lack of market catalysts, investors could be looking to this for some leads.
A softer outlook could prompt further pressure on NZD and test its support level of 0.84256 on NZD/USD.