News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/UVvf51HiVP https://t.co/mkHo2v37as
  • #2020election polls continue to show Democratic nominee Joe Biden maintaining a strong lead #Trump Supreme Court nomination may throw a wrench into bipartisan stimulus talks #AUDUSD is trading at former resistance-turned-support. What happens if it breaks? https://www.dailyfx.com/forex/fundamental/article/special_report/2020/09/27/AUDUSD-Analysis-Ahead-of-Presidential-Debate-Supreme-Court-Nominee-Battle-.html
  • USD/MXN pushes higher as a long-awaited correction in the US Dollar gets underway. Get your #currencies update from @HathornSabin here: https://t.co/QMpun4KOgO https://t.co/KAYojshy0P
  • Emotions are often a key driving force behind #FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here:https://t.co/eILWbFgHRE https://t.co/KXMefr6a3r
  • Join analyst @DavidJSong at 6:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here: https://t.co/gBlrRpCc55 https://t.co/5FwNLSVYje
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EDT on DailyFX! https://t.co/lxd5fZnn4H
  • EUR/USD fell sharply last week and there are few signs yet that the selling is over. However, a bounce is likely before the decline resumes. Get your #currencies update from @MartinSEssex here: https://t.co/BxglKuKVhj https://t.co/8nJQXhUTHI
  • The week ahead has many systemic issues that take control of the markets, but scheduled data is heavily skewed to the Dollar. Here is my video for the week ahead: https://www.dailyfx.com/forex/video/daily_news_report/2020/09/26/SP-500-Break-Risk-and-Dollar-Charge-Sees-Accelerants-Next-Week.html?ref-author=Kicklighter&QPID=917719&CHID=9?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/PL3KZhn1HV
  • GBP turbulence persists as investors eye the next round of EU-UK Brexit negotiations. Cautious optimism signals a deal is near. Get your #currencies update from @PaulRobinsonFX here: https://t.co/WjU4oYpmf7 https://t.co/QJp3jpS3Ui
  • The AB=CD pattern is simple once you know how to spot it and draw the proper Fibonacci retracements. Make your trading strategy as simple as ABCD here: https://t.co/AKmlmaAZBS https://t.co/ukvZfr6BXf
NZ Dollar Depreciates as Housing Fund Reduces RBNZ Rate Hike Bets

NZ Dollar Depreciates as Housing Fund Reduces RBNZ Rate Hike Bets

2017-07-11 23:10:00
Daniel Dubrovsky, Analyst
Share:

Talking Points:

  • The New Zealand Dollar depreciated against its major counterparts on Monday
  • Prime Minister Bill English approved an NZD 1 billion housing infrastructure fund
  • Local front-end government bond yields fell, hinting at reduced RBNZ rate hike bets

Have a question about why the New Zealand Dollar did what it did? Join a Q&A webinar and ask it live!

The New Zealand Dollar depreciated against its major counterparts on Monday, also suffering its largest decline against the USD in over a month, as Prime Minister Bill English approved a housing infrastructure fund. The project, allocated at NZ$1 billion, is to speed up the delivery of 60,000 units over the next ten years across five different areas including Auckland.

The news crossed the wires around 22:30 GMT, around the same time that local 2-year government bond yields fell hinting at ebbing RBNZ hawkish expectations. As it stands, the priced-in outlook implied in overnight index swaps (OIS) suggests the markets see a better-than-even chance of a hike in March of 2018, but confidence is relatively low at just 52.2 percent.

The RBNZ has opted to use macroprudential tools like loan-to-value ratios rather than rate hikes in its attempt to cool the buoyant housing market. However, an increase in the supply of housing that eases upward pressure on real estate prices might translate into broader cooling of inflation, pushing back the timeline for the start of stimulus withdrawal. This might explain the negative response from yields and Kiwi Dollar.

NZ Dollar Depreciates as Housing Fund Reduces RBNZ Rate Hike Bets

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES