The NZD/USD trades at a similar level to yesterday morning, around 0.7860. Despite inspiring a bit of immediate volatility, the release of the US Federal Reserve Minutes proved to be a bit of a non-event yesterday morning. Most currencies including the NZD/USD quickly returned to trade at earlier levels. A quiet day of trading then ensued for the NZD/USD. Yesterday’s NZ producer price data showed deflation (outputs -1.1%q/q; inputs -1.5%q/q). These were driven lower by dairy and forestry prices as well as lower energy prices. But not all prices are falling, as shown by the capital goods price index released at the same time. Construction costs continue to demonstrate genuine inflation and signs of acceleration. All plenty for the RBNZ to mull over.
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