21 Jan 2014
NZD/USD gains on rate hike speculation
FXstreet.com (London) - NZD/USD gained overnight as higher-than-expected New Zealand inflation increased bets of a rate hike from the Reserve Bank of New Zealand.
The fourth quarter consumer price index rose 0.1 percent against expectations of a 0.1 percent fall. Year-on-year inflation rose 1.6 percent against expectations of a 1.5 percent gain.
Home building continues to drive inflation
REINZ house prices released yesterday showed a fall of 1 percent month-on-month, falling from a 1.2 percent rise in November. Home sales fell 1.1 percent year-on year. While the numbers indicated that the Reserve Bank of New Zealand’s loan-to-value ratio restrictions on residential property are having some intended consequences of deleveraging the Kiwi housing market, the post-Christchurch earthquake home construction continues to drive inflation.
Kiwi rises on rate hike speculation
The Kiwi dollar climbed on the news to USD0.8339 on expectations of an early rate hike. The RBNZ had forcast a mid-20014 hike, but bets have increased that a hike could come as early as next week’s central bank meeting.
NZD/USD is currently trading at USD0.8316.
The fourth quarter consumer price index rose 0.1 percent against expectations of a 0.1 percent fall. Year-on-year inflation rose 1.6 percent against expectations of a 1.5 percent gain.
Home building continues to drive inflation
REINZ house prices released yesterday showed a fall of 1 percent month-on-month, falling from a 1.2 percent rise in November. Home sales fell 1.1 percent year-on year. While the numbers indicated that the Reserve Bank of New Zealand’s loan-to-value ratio restrictions on residential property are having some intended consequences of deleveraging the Kiwi housing market, the post-Christchurch earthquake home construction continues to drive inflation.
Kiwi rises on rate hike speculation
The Kiwi dollar climbed on the news to USD0.8339 on expectations of an early rate hike. The RBNZ had forcast a mid-20014 hike, but bets have increased that a hike could come as early as next week’s central bank meeting.
NZD/USD is currently trading at USD0.8316.