Forex Flash: RBNZ action foments rise in swaps – BNZ (Barcelona) - A bit of hawkish sentiment from RBNZ Deputy Governor Spencer on the NZ housing market recently produced a brief flurry of excitement in local markets. The NZ swap yields nudged higher into the close (2-year yield from 2.83% to 2.87%), helping to set the NZD/AUD on a path higher. According to the BNZ Research Team, “At around 0.8130, the cross is now creeping into the top end of our model’s 0.7950-0.8150 short-term ‘fair-value’ range.”

Spencer’s speech made it clear the RBNZ is paying closer attention to the housing market, from both a monetary policy and financial system perspective. “If the housing market momentum continues and adds inflationary pressures, a monetary response would become more likely. Macro-prudential tools…are not as powerful as monetary policy.” It doesn’t get much clearer than that.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.