RBNZ Chief Economist Paul Conway said annual inflation rate of 7.2% was “obviously too high”. But, he added, “we expect to see inflationary pressures easing going forward” and “are hopeful that it has peaked.”
The “very rapid tightening in monetary policy” is starting to have an effect and “there are early signs that the economy is starting to cool,” he said.
NZD/USD is currently still bounded inside the consolidation pattern from 0.5511. While a breach of 0.5812 resistance cannot be ruled out, upside could be capped by 55 day EMA (now at 0.5876). That is, an eventual downside breakout is expected, sooner or later, through 0.5511 to resume larger down trend.
