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2021.11.1807:29:00UTC+00NZ Dollar Appreciates As RBNZ Inflation Expectations Jump

The NZ dollar drifted higher against its major trading partners in the Asian session on Thursday, following the release of a stronger-than-expected inflation survey from the Reserve Bank of New Zealand.

Survey from the RBNZ showed that inflation and rate hike expectations accelerated in the fourth quarter.

One-year inflation expectations jumped to an 11-year high of 3.70 percent versus 3.02 percent seen in the third quarter.

Two-year inflation expectations rose to 2.96 percent from 2.27 percent projected earlier.

The official cash rate, or OCR, expectations climbed to 0.75 percent, representing single rate hike from the current level.

The OCR was last raised by 25 basis points to 0.50 percent in October. The RBNZ will meet next week to decide on monetary policy.

The NZD/USD pair advanced to a 2-day high of 0.7046 from yesterday's close of 0.6996. On the upside, immediate resistance is seen near the 0.72 level.

The NZD/JPY pair reached as high as 80.40, up from a session's low of 79.75 seen at 5 pm ET. If the kiwi rises further, it may find resistance around the 82.00 level.

The EUR/NZD pair was down at 1.6071, a level unseen since August 2017. The kiwi is likely to challenge resistance around the 1.56 level.

The AUD/NZD pair held steady at 1.0347, after falling to a 9-day low of 1.0333 at 9:25 pm ET. The kiwi may locate resistance around the 1.02 level.

Looking ahead, U.S. weekly jobless claims for the week ended November 13 and leading index for October will be published in the New York session.

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