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House Prices Continue To Rise, Treasury Releases Comments On RBNZ Bill Review

NZD

NZD/USD ground higher Monday amid an uptick in crude oil prices, with market holidays in China and Australia sapping liquidity. The rate last trades flat at $0.7143.

  • BBG reported that NZ Treasury has released its advice on proposed amendments to the Reserve Bank of New Zealand Bill, which is currently under review. The Treasury said that the bill would tweak the RBNZ's governance model, setting up a non-executive board to monitor RBNZ management and the MPC and flagged the risk of conflicts between the MPC and the new board. The Treasury suggested that RBNZ Gov should sit on the board, adding that the Reserve Bank supports such an approach.
  • REINZ House Sales rose 81.4% Y/Y and 1.3% M/M in May, while House Price Index gained 29.8% Y/Y and 1.0% M/M. The median price rose 32.3% Y/Y, which was the largest annual increase on record.
  • New Zealand's food price index comes out shortly, with BoP current account balance due Wednesday. On Thursday, all eyes will be on the GDP report for the first quarter.
  • Looking further afield, on Jun 22 RBNZ Chief Economist Ha will be on a panel slated for Jun 22.
  • Bulls see Jun 10 high of $0.7213 as their initial target and a breach of that level would open up Jun 7 high of $0.7243. Conversely, a slide through Jun 11/May 4 lows of $0.7116 would shift focus to the 200-DMA at $0.7038.

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