New Zealand Inflation Shock Has Swaps Traders Pricing Hikes

New Zealand inflation pressure from energy prices and a weaker Kiwi has swaps traders pricing aggressive Reserve Bank of New Zealand rate hikes. David Scutt, StoneX Media Senior Market Analyst, explains why tradable inflation has reversed and how the New Zealand dollar pairs are responding. Tradable inflation has swung from -1.6% to 4.9% annually, with diesel up 55.8% over the year and the trade-weighted Kiwi down around 3.7% since January. Swaps markets now price a far more hawkish official cash rate path than the Reserve Bank of New Zealand projected in September. AUD/NZD has tracked two-year yield spreads, while NZD/USD has followed U.S. macro sentiment. Discover Actionable Insights with the latest Market Outlook Reports: https://intel.stonex.com/offer?language=en&campaignId=A908C315-DC62-4F35-AC16-870BB71E84D1&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_david_scutt&utm_content=share 00:00 - Hike Bets Meet NZ Inflation 00:36 - Tradable Inflation Reverses 01:32 - Diesel Jumps 55.8% in a Year 02:08 - Weak Kiwi Fuels RBNZ Hike Bets 03:16 - AUD/NZD Tracks the Yield Gap 04:10 - Kiwi Rebound Meets Resistance Like and subscribe for more financial market insights. #NZD #StoneX #DavidScutt #Forex --------- Like this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official Visit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts. Visit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social