13 May 2015
NZD/USD in highs around 0.74
FXStreet (Mumbai) - The New Zealand remains heavily bid against its American counterpart in the mid-Asian session, lifting NZD/USD above 0.74 barrier. The Kiwi jumped in Asia after the RBNZ announced a new policy today aimed at cooling investor activity in Auckland's overheated housing market. While markets now await a batch of China macro data due out shortly.
NZD/USD rises from 0.7362
Currently, the NZD/USD pair trades higher by 0.50% at 0.7398, retreating from fresh session highs of 0.7422. NZD/USD extends its recovery in to the second straight session after the Reserve Bank of New Zealand (RBNZ) announced new restrictions to tackle the overheating witnessed in Auckland’s housing markets.
The proposed new housing policy set higher loan-to-value ratio (LVR) restrictions on investors in Auckland's property market, which would mean any buyer would need to come up with at least a 30% deposit.
Auckland's rapidly-rising house prices are the main driver behind the bank's new policy, with the RBNZ concerned about financial stability in the event of a downturn in the property market or some other systemic shock.
Moreover, the kiwi remains supported amid broad USD weakness following below estimates US jobs opening data released yesterday.
Meanwhile, markets now turn their focus on retail sales data from US later today for further dollar moves which have major impact on the Kiwi.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7450 levels and above which it could extend gains to 0.7520 levels. To the downside immediate support might be located at 0.7360 levels below that at 0.7319 levels.
NZD/USD rises from 0.7362
Currently, the NZD/USD pair trades higher by 0.50% at 0.7398, retreating from fresh session highs of 0.7422. NZD/USD extends its recovery in to the second straight session after the Reserve Bank of New Zealand (RBNZ) announced new restrictions to tackle the overheating witnessed in Auckland’s housing markets.
The proposed new housing policy set higher loan-to-value ratio (LVR) restrictions on investors in Auckland's property market, which would mean any buyer would need to come up with at least a 30% deposit.
Auckland's rapidly-rising house prices are the main driver behind the bank's new policy, with the RBNZ concerned about financial stability in the event of a downturn in the property market or some other systemic shock.
Moreover, the kiwi remains supported amid broad USD weakness following below estimates US jobs opening data released yesterday.
Meanwhile, markets now turn their focus on retail sales data from US later today for further dollar moves which have major impact on the Kiwi.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7450 levels and above which it could extend gains to 0.7520 levels. To the downside immediate support might be located at 0.7360 levels below that at 0.7319 levels.