Ray Attrill, global co-head of currency strategy at National Australia Bank on the NZD response to inflation expectations data earlier today:

  • Says the NZD is quite sensitive to minor swings in markets' thinking about interest rates
  • "The market is flirting with the idea that the RBNZ could cut rates this year"
  • "Because that inflation expectations reading is now in the lower half of the RBNZ's 1%-3% inflation target range, it's resonated a little bit today"
  • Attrill doesn't think the RBNZ will cut rates