DislikedNZ CPI out down 0.5pct Kiwi gets sold off in hope the RBNZ cuts rates. However the major component of this is petrol price falling 7pct which is INCLUDED in their data. Another large component was fall in seasonal vegetables. I don't think the RBNZ will base their monetary policy on petrol prices and vegetables. Infact having returned from NZ their economy seem quite bubbly im my snapshot.. Construction happening and record spend for Xmas shopping. Given the yield still good I would be a buyer of Kiwi on the crosses but naked against USD is not...Ignored
http://www.businessnz.org.nz/news-an...-high-note-pmi
So NZ I believe is out performing Australia.
Australia's data is obscure and I believe there are more valid reason to cut Australian interest rates than in NZ.
Lower Inflation in NZ was brought about by 2 major elements petrol and vegetables. That doesnt warrant rate cut given the impact.
In Australia there are big job losses and under performing businesses plus budget deficit woes which may force the govt changes to cut more welfare and raising of taxes .
Austerity leads to belt tightening but lower interest rates may offset given those who are mortgaged to the hilt.