Sponsored by:
  • ---/---
    --- | ---

  • ---/---
    --- | ---

  • ---/---
    --- | ---

  • ---/---
    --- | ---

  • ---/---
    --- | ---

  • ---/---
    --- | ---

  • ---/---
    --- | ---

  • ---/---
    --- | ---

  • ---/---
    --- | ---

  • ---/---
    --- | ---

  • ---/---
    --- | ---

  • ---/---
    --- | ---

Technical Analysis

New Zealand Dollar Falls on Housing Data, Tax Evasion Proposal


The New Zealand Dollar continued to fall after a lousy day on Wednesday. The currency fell alongside local front-end government bond yields, hinting at ebbing RBNZ interest rate hike bets as the inspiration behind the selloff.

First, a report from Barfoot & Thompson, the country’s largest privately owned real estate company, showed median house prices in Auckland fell 4.1 percent in the past three months as sales volumes dropped to the weakest since 2010.

Next, the government unveiled a proposal to address multinational tax evasion. The measures are expected to generate extra NZ$200 million per year according to calculations presented by New Zealand Finance Minister Steven Joyce.

Both developments appear to undermine the case for RBNZ rate hikes. The central bank opted to use macroprudential tools to cool the buoyant housing market. If prices are indeed falling, rates can be allowed to remain lower for longer to encourage a return to on-target inflation.

Meanwhile, the government’s tax evasion plan might trim consumption, hurting growth and thereby cooling price pressures. Needless to say, this too might see the RBNZ delaying tightening (although it ought to be noted that markets are still pricing in at least one rate increase in the next 12 months).


FX Empire - the company, employees, subsidiaries and associates, are not liable nor shall they be held jointly or severally for any loss or damage as link result of reliance on the information provided on this website. The data contained in this website is not necessarily provided in real-time nor is it necessarily accurate.
FX Empire may recieve compensation from the companies featured on the network.

All prices herein are provided by market makers and not by exchanges. As such prices may not be accurate and they may differ from the actual market price. FX Empire bears no responsibility for any trading losses you might incur as link resultof using any data within the FX Empire.