CoreLogic Sees Signs Of Fading Housing Market Momentum

NZD/USD ebbed lower Wednesday, on the back of broader greenback gains, with quarter-end flows eyed. An uptick in commodity currencies likely prevented a deeper sell-off and the rate finished just 9 pips shy of opening levels.

• The latest CoreLogic House Price Index suggested that housing market momentum continued to ease. Monthly nationwide price gain slowed to +1.8% in June from +2.2% seen in May. CoreLogic commented that "the exceptional growth displayed during the past year was not sustainable, particularly with increased deposit requirements, market uncertainty driven by Government regulation and the prospect of higher interest rates. The turnaround should perhaps not be too much of a surprise, though the timing of it certainly is."
• Per New Zealand's financial statements for the 11 months through May 31, operating deficit before gains was NZ$3.64bn, i.e. NZ$5.80bn less than forecast. Core tax revenue topped expectations.
• New Zealand's building permits will be released later today, before ANZ Consumer Confidence takes focus on Friday.
• NZD/USD has crept higher this morning and last operates +9 pips at $0.6992. A move through Jun 25 high of $0.7095 would allow bulls to return into the driving seat. Bears keep an eye on Jun 18 low of $0.6923, a key near-term support.