NZ: Housing market stabilising – ANZ

Sandeep Kanihama FXStreet Contributor

ANZ analysts note that the New Zealand’s housing market has tentatively stabilised as nationally, house prices were flat m/m in July (up 1.7% y/y 3mma), but the theme of regional divergence continued.

Key Quotes

“Auckland prices are down 3.3% y/y, while pockets of strength remain in the regions of Manawatu-Whanganui and Southland. Falls in mortgage rates over the past year have not provided a noticeable boost to house prices so far, but the recent pick-up in sales supports our expectation of stabilisation in prices from here.”

“Overall, the outlook for house price inflation is delicately balanced. Lower mortgage rates (reflecting a lower OCR), gradual loosening of the LVR restrictions, and an ongoing supply-demand imbalance are expected to provide ongoing support. However, headwinds in the form of a cautious banking sector, wary investors (particularly given policy changes), a deteriorating labour market outlook and affordability constraints limit the upside.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.