New Zealand Morning Focus

This report covers the latest US economic data, including PCE inflation and revised Q1 GDP, which keep the Federal Reserve on a path of sustained high rates. It also highlights the continued weakness of the NZD due to diverging RBNZ hike expectations.

Key Takeaways

• 1.US inflation indicators (PCE) remain elevated, reinforcing expectations for the Fed to hold rates steady until mid-2027.
• 2.NZD remains weak as market expectations for an RBNZ rate hike fade, despite the firm belief by ANZ analysts that a hike is coming.
• 3.US Q1 GDP revised upwards to 2.1% saar, though personal consumption growth was revised down significantly.

Table of Contents

• Highlights
• Data and events today
• Financial markets
• Global markets overview
• Key data and events
• Key themes and views
• Market snapshot (07:15 NZ Time)
• Key data releases
• What's ahead today

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