AUD/NZD: Construction, commodities and politics building case - AmpGFX

The New Zealand employment data released on Tuesday moved the needle in favour of a strong AUD/NZD, according to Greg Gibbs, Analyst at Amplifying Global FX Capital. 

Key Quotes

“Perhaps more significant is evidence that construction and the housing market in New Zealand appear to be peaking, while in Australia construction appears to be picking up, led by stronger non-residential building consents.  A lift in the non-residential building sector in Australia gels with broader evidence of rising business confidence surveys.  Housing market activity and prices are also more clearly slowing in New Zealand in response to its macroprudential measures, while the Australian housing market remains resilient in the face of its mild macroprudential measures.”

“Residential building approvals in Australia stabilised with gains in house approvals in recent months.  The AUD/NZD may also be supported by broad-based gains in industrial commodity prices, consistent with a stable and more solid global economic recovery.  The market appears to be under-estimating the potential for political and economic uncertainty related to the New Zealand national election set for 23 September.”