50-DMA Gives Way

Above-forecast U.S. inflation data fuelled bets that the Fed might tighten policy, inspiring decent demand for the greenback. NZD/USD retreated as a result, pierced its 50-DMA and printed levels not seen in more than three weeks.

• The rate last operates at $0.7063, virtually unchanged on the day. Bears look for a sell-off past the 100-DMA at $0.7027, before taking aim at the round figure of $0.7000. On the flip side, a jump above Nov 8 high of $0.7177 would bring Oct 28/21 highs of $0.7217/19 into view.
• House sales fell 21.7% Y/Y in October after a 37.9% decline recorded in September, according to the latest REINZ Property Report. The Institute noted that "there was a significant increase in sales month-on-month — up 30.3% from September," which "shows a market revitalised by easing COVID-19 restrictions, the spring lift and growing confidence in vendors and buyers to make decisions about their housing." Median house price rose 23.4% Y/Y to NZ$895,000.
• Focus turns to New Zealand's BusinessNZ M'fing PMI, due tomorrow. In the meantime, Australian labour market report will be eyed today for any trans-Tasman spillover.