NZD/USD PRICE OUTLOOK: RBNZ HOUSING REMIT SENDS NEW ZEALAND DOLLAR SURGING
- New Zealand Dollar exploding higher in response to RBNZ housing remit
- Sustainable housing prices now an objective of the central bank
- NZD/USD, NZD/JPY surging 78-pips and 109-pips respectively
The New Zealand Dollar is flying high against its FX peers today and extending intraday gains late into the session. NZD/USD price action popped an extra 50-pips in response to the RBNZ housing remit just announced by New Zealand’s Finance Minister Grant Robertson. The change now requires the Reserve Bank of New Zealand to support more sustainable housing prices as one of its objectives.
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This looks to potentially cool New Zealand’s red-hot housing market on the heels of rampant rises in prices. The REINZ House Price Index, for example, has soared nearly 20% year-on-year according to January’s figures. As such, the housing remit could reduce the likelihood of more easing from the RBNZ, leading to a stronger New Zealand Dollar. Check out this analysis by DailyFX Strategist David Song for NZD/USD technical outlook.
— Written by Rich Dvorak, Analyst for DailyFX.com
Connect with @RichDvorakFX on Twitter for real-time market insight
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