The Reserve Bank of Newzealand's Deputy Governor Christian Hawkesby is crossing the wires and has stated that there is a need keep inflation expectations anchored.
The official is an advocate for tightening conditions past neutral of 2% and reduce stimulus. He forecasts a period of subdued consumption. He also said the risk of a recession is a possibility.
The kiwi has been firm following the RBNZ's hawkish Statement when it raised rates by 50bp to 2%, indicating more hikes to come.
''The Kiwi is a touch stronger this morning, but it looks more like currency at the upper end of trading ranges than a currency on the verge of a major breakout, the analysts at ANZ Bank argued.''
Meanwhile, the kiwi is meeting a key level of resistance on the weekly chart and if the bulls fail here, then there will be a case for a downside continuation building on the longer-term technical outlook.
