Forex Marketz Daily Forex News – Fully Markets Update
The New Zealand or Kiwi dollar drifted lower this morning as Acting Governor of the Reserve Bank of New Zealand Grant Spencer gave testimony on the New Zealand housing market. The NZD/USD, which had seen the U.S. dollar recovering, continued this trend however.
A strong rise with prices in property hotspots such as Auckland and Wellington have left some forecasters worried about a bursting bubble. However Grant Spencer said he saw no reason for the housing market to “tank.”
Spencer is the Acting Governor of the Reserve Bank of New Zealand. He will remain as such until a new governor is appointed in early 2018. He spoke about the current shortage of houses for owners, and he does not see a collapse in housing prices as a high risk.
The RBNZ has been pretty cool with the housing market in the past. The central bank has introduced loan leverage limits on mortgages, and Spencer said he does not know when lending limits will be removed. He expects that the government’s “Kiwibuild” program will supply 5,000 houses per year.
The Kiwi Dollar ignores Comments on Housing
There was little here for Kiwi dollar investors, and the benchmark NZD/USD did not move much today as he spoke. The Kiwi drifted lower because there was nothing hawkish in his comments.
The Forex market is focused on the United States right now. A Federal Reserve interest rate increase is expected next month. The financial markets are eager to see if the Fed’s prognosis of three rate hikes in 2018 remains valid.
Forex traders are are also watching tax reform slowly making progress in Congressional. New Zealand’s official cash rate is still at its 1.75 percent record low and is unlikely to change anytime soon.
