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Kiwi bulls are likely feeling emboldened by the fact that Reserve Bank of New Zealand’s (RBNZ) preferred gauge of inflation hit a 7-year high in the second quarter.

The sectoral factor model, which RBNZ uses as a measure of “core inflation” jumped 1.7 percent year-on-year in Q2 from the previous quarter’s print of 1.6 percent.

The data seems to have put a bid under the NZD/USD, which has gained more than 35 pips in the last 15 minutes to hit a session high of 0.6817.