New Zealand economy: Most likely, the New Zealand Consumer Price Index, for the third quarter of 2017, would undermine the NZDUSD’s mid-term bullish return.

If New Zealand’s inflation data be weak, then the New Zealand Reserve Bank will be forced to keep interest rates down until early 2018.

The analysts predict an annual inflation rate of 1.8%. Even if the inflation rate is slightly higher than 1.8 percent, the demand for the New Zealand dollar will be weakened, as the inflation is far from the New Zealand Bank Reserve’s target. in contrast, it is predicted that the head of the Central Bank of New Zealand will refuse to change interest rates at the last meeting of 2017 on November 9th, because “it is likely the overall inflation in the coming chapters will reflect fluctuations in inflation in the importing sector.”

Meanwhile, the Reserve Bank of the New Zealand may want to weaken the value of the NZD by verbal intervention. “The devaluation of the New Zealand dollar can help to boost inflation and lead to a balanced economic growth.” Similarly, if New Zealand’s economic data be weak, the market expectations will be weakened and, as a result, most of the NZDUSD growths will be lost in 2017. By contrast, a significant increase in consumer inflation could boost NZDUSD’s rally return, since the increase of inflation encourages the central bank to use of the contractionary monetary policy.