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NZ House Prices Still On A Tear


Firmer commodity prices and greenback sales briefly pushed NZD/USD through the $0.7000 mark Wednesday, but after peaking at $0.7026 the rate pulled back over the last WMR fix of Q1 and gave up the bulk of its earlier gains.

  • CoreLogic House Price Index surged 16.1% Y/Y in Mar after rising 14.5% in Feb. House price inflation accelerated to the fastest pace in 15 years.
  • ANZ Consumer Confidence Index fell 2.0% M/M to 110.8 from 113.1 in Mar after a 0.6% downtick in Feb. ANZ said that their confidence gauge appears to have "topped out." Worth noting that inflation expectations edged higher to 1.97% from 1.95%.
  • Weekly experimental jobs data from Stats NZ showed that 7,280 paid jobs were shed in the week through Feb 21. The data series is not subject to seasonal/quality adjustments.
  • NZ Tsy released its financial statements for the eight months through Feb. Budget deficit registered at NZ$3.66bn, below the projected NZ$8.17bn, as core tax revenue beat expectations by NZ$2.28bn.
  • NZD/USD last seen at $0.6983, little changed on the day. A jump above Mar 30 high of $0.7034 would open up the 100-DMA at $0.7136. Bears look for a dip through Mar 25 low of $0.6943, towards the 200-DMA at $0.6883.
  • Local markets will be closed for a public holiday this Friday.

Fig. 1: New Zealand CoreLogic House Price Index Y/Y (%)

Source: MNI - Market News/Bloomberg

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