The New Zealand Dollar is flying high versus its peers today and extending intraday gains late into the session. The price at the morning hours surpassed the 0.7450 price level, and now consolidating around 0.7434. The Kiwi 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.
This looks to potentially cool off the New Zealand’s hot housing market on the heels of widespread 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.
Tomorrow Friday, in the late hours the RBNZ governor will speak. Volatility is often experienced during his speeches as traders attempt to decipher interest rate clues. As head of the central bank, which controls short term interest rates, he has more influence over the nation’s currency value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.
Warning:
Trading on CFDs involves a high level of risk, including full loss of your trading funds. Before proceeding to trade, you must understand all risks involved and acknowledge your trading limits, bearing in mind the level of awareness in the financial markets, trading experience, economic capabilities and other aspects.
Disclaimer:
Market Trends, Charts, Trading Ideas or other information provided by BKFX (Pty) Ltd and/or third parties are not intended as an investment advice and/or recommendation. The information provided is not presented as suitable or based on your specific need. You are responsible for your own investment decisions and you should not trade with money you cannot afford to lose. Any views or opinions presented in this Article are solely those of the author and do not necessarily represent those of the Company, unless otherwise specifically stated. The Company may provide the general commentary which is not intended as an investment advice and must not be construed as such. Seek advice from a separate financial advisor if an investment advice is needed. The Company assumes no liability for errors, inaccuracies or omissions, inaccuracies or incompleteness of information, texts, graphics, links or other items contained within this article/material.