The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation. The impact on the currency may go both ways, a rise in CPI may lead to a rise in interest rates and a rise in local currency, on the other hand, during recession, a rise in CPI may lead to a deepened recession and therefore a fall in local currency.
BNZ-BusinessNZ PSI is a monthly survey of the services sector providing
an early indicator of activity levels. A PSI reading above 50 points indicates
services activity is expanding; below 50 indicates it is contracting.
The main PMI and sub-index results are seasonally adjusted.
A higher than expected reading should be taken as positive/bullish for the NZD , while a lower than expected reading should be taken as negative/bearish for the NZD.
Monetary aggregates, known also as "money supply", is the quantity of currency available within the economy to purchase goods and services. Depending on the degree of liquidity chosen to define an asset as money, various monetary aggregates are distinguished: M0, M1, M2, M3, M4, etc. Not all of them are used by every country. Note that methodology of calculating money supply varies between countries. M2 is a monetary aggregate that includes all physical currency circulating in the economy (banknotes and coins), operational deposits in central bank, money in current accounts, saving accounts, money market deposits and small certificates of deposit. Excess money supply growth potentially can cause inflation and generate fears that the government may tighten money growth by allowing the interest rates to rise which in turn, lowers future prices. M2 = Currency in circulation + demand deposits (private sector) + time and savings deposits (private sector).
A higher than expected reading should be taken as positive/bullish for the JPY, while a lower than expected reading should be taken as negative/bearish for the JPY.
M3 Money Supply measures the total quantity of domestic currency in circulation and deposited in banks. An increasing supply of money leads to additional spending, which in turn leads to inflation.
