The risk-sensitive New Zealand Dollar (NZD) remains under pressure as uncertainty surrounding negotiations between the United States (US) and Iran boosts demand for the US Dollar (USD). The Consumer Price Index (CPI) is expected to rise 0.1% on a monthly basis in July, while the core index is forecast to increase 0.2%. A hotter-than-expected inflation reading could reinforce these expectations and provide further support to the US Dollar. In New Zealand, the monetary policy outlook nevertheless provides some support to the Kiwi. Less than three months before the general election, the episode highlights divisions within the National Party and adds another source of uncertainty for the New Zealand Dollar.