Kiwi Creeps Higher, NZ House Prices Continue To Rise

NZD/USD ground higher Wednesday, with the much-awaited U.S. CPI report inspiring some volatility in the greenback. The rate dipped to a fresh session low as the pace of U.S. consumer price growth proved faster than forecast. NZD/USD promptly reversed aforementioned losses as the U.S. dollar lost ground amid a flattening in Tsy yield curve.

• The rate has edged higher this morning, building on Wednesday's gains. It now changes hands at $0.6970, 6 pips higher on the day. A clearance of Oct 4 high of $0.6982 would allow bulls to take aim at the 50-DMA, which kicks in at $0.7002. On the flip side, a fall through Oct 6 low of $0.6877 would open up $0.6860, which limited losses on Sep 29 & 30.
• Looking ahead, BusinessNZ M'fing PMI will take focus tomorrow. Headline index plunged to 40.1 in August as parts of New Zealand went into lockdown.
• Health Min Little held a presser on New Zealand's strategy of dealing with Covid-19 going forward. Little suggested that under the worst-case scenario by next year the northern region could see over 5,000 community cases every week.
• REINZ released their Monthly Property Report. Median house prices fell 6.5% M/M in September, with the biggest decline seen in Auckland. Most regions outside of Auckland registered upticks in respective median property prices.