AUD/NZD hits 7-month low on RBNZ house price news


  • AUD/NZD drops to the lowest level since April 14.
  • New Zealand proposes adding house prices to central bank remit, sending the NZD higher.

The bid tone around the Kiwi strengthened, pushing AUD/NZD down to multi-month lows after New Zealand's government proposed amending the Reserve Bank of New Zealand's remit to include stability in house prices as a factor for monetary policy.

"With an extended period of low-interest rates, and sometime before housing supply can catch up with demand, now is the time to consider how the Reserve Bank may contribute to a stable housing market," Finance Minister Grant Robertson said Tuesday in Wellington. "I want to be clear I am not proposing any changes to the mandate or the independence of the Reserve Bank.

"If implemented, Robertson's recommendation would dash hopes for additional easing in the form of negative rates or bigger bond purchases, as the property prices have soared this year in the wake of coronavirus pandemic and record-low borrowing costs. That explains the NZD's positive reaction to Robertson's comments.

Australia reported preliminary trade data for October. Exports rose 6% month-on-month while imports increased 8%, resulting in a trade surplus of AUD 4,840 million versus AUD 5,630 million in September. The decline in surplus was anything but AUD positive and did little to put a floor under AUD/NZD.

The pair fell to 1.0472, the lowest level since April 14, before recovering slightly to 1.0489.

 

Technical levels 

AUD/NZD

Overview
Today last price 1.0493
Today Daily Change -0.0031
Today Daily Change % -0.29
Today daily open 1.0524
 
Trends
Daily SMA20 1.0621
Daily SMA50 1.0717
Daily SMA100 1.0767
Daily SMA200 1.0653
 
Levels
Previous Daily High 1.056
Previous Daily Low 1.0513
Previous Weekly High 1.063
Previous Weekly Low 1.0511
Previous Monthly High 1.0906
Previous Monthly Low 1.0595
Daily Fibonacci 38.2% 1.0531
Daily Fibonacci 61.8% 1.0542
Daily Pivot Point S1 1.0504
Daily Pivot Point S2 1.0485
Daily Pivot Point S3 1.0457
Daily Pivot Point R1 1.0552
Daily Pivot Point R2 1.058
Daily Pivot Point R3 1.0599

 

 

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