Ardern Outlines Roadmap Out Of Pandemic, REINZ Sees Signs Of Slower House Price Growth

NZD/USD shot higher Wednesday as monthly consumer-price inflation slowed in July, while core CPI inflation decelerated marginally more than forecast, which triggered broad-based greenback sales.

• PM Ardern outlined the government's plan to expedite Covid-19 vaccine rollout, before implementing a trial scheme later this year, whereby inoculated people could self-isolate at home upon return from overseas. This would prepare the country for a phased border reopening from early 2022.
• REINZ House Sales shrank 11.7% Y/Y in July, reversing the 6.2% gain recorded in June. The House Price Index surged 30.6% Y/Y, registering a new record high for the 14th straight month. REINZ said that "the last two months have shown early indications that the rate of growth [in house prices] is starting to ease, however, it is too early to say whether this is the usual winter easing (...) or if the government's intervention in the market and signalled changes to the OCR are starting to take effect".
• New Zealand's food price index is due shortly, with the RBNZ's gauge of inflation expectations coming up later in the day. The prior reading showed that 2-year inflation expectations rose to a three-year high in Q2.
• NZD/USD last trades at $0.7042, unchanged on the day. A move through Aug 4 high of $0.7089 would open up Jul 6 high of $0.7105, while losses past Aug 10 low of $0.6969 would expose Aug 2 low of $0.6953.