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NZD: Kiwi Falls Following Weaker-Than-Expected Q4 CPI

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  • The NZD/USD is trading 0.4% lower to 0.5656, pressured by weaker-than-expected Q4 CPI data and rising bets on an RBNZ rate cut next month. The Kiwi is the worst performing G10 currency today.
  • Non-tradeable inflation slowed to 0.7% q/q, the weakest since Q1 2021, softening rate expectations further, with swaps pricing in a 48bps now for the February meeting, from 44.5bps at Tuesday's close.
  • Macro and leveraged funds increased short positions, adding to the kiwi's weakness. However, strong dairy auction results and an upgraded milk price forecast by ASB Bank offered a slight positive counterbalance, ABS now see's milk prices at $10.25kg for 2024-2025.
  • AUD/NZD remains within recent ranges, after earlier making a session high of 1.1085, it currently trades up 0.25% for the session at 1.1075. 
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  • The NZD/USD is trading 0.4% lower to 0.5656, pressured by weaker-than-expected Q4 CPI data and rising bets on an RBNZ rate cut next month. The Kiwi is the worst performing G10 currency today.
  • Non-tradeable inflation slowed to 0.7% q/q, the weakest since Q1 2021, softening rate expectations further, with swaps pricing in a 48bps now for the February meeting, from 44.5bps at Tuesday's close.
  • Macro and leveraged funds increased short positions, adding to the kiwi's weakness. However, strong dairy auction results and an upgraded milk price forecast by ASB Bank offered a slight positive counterbalance, ABS now see's milk prices at $10.25kg for 2024-2025.
  • AUD/NZD remains within recent ranges, after earlier making a session high of 1.1085, it currently trades up 0.25% for the session at 1.1075.