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Orr Laments Unsustainable House Prices

NZD

NZD/USD advanced Monday as the greenback traded on a softer footing, with the DXY moving away from its one-month highs. Nonetheless, the rate struggled to break out of a familiar range.

  • New Zealand's building permits fell 1.9% M/M in September, reversing some of the 3.8% gain recorded in August.
  • Participants look ahead to the publication of New Zealand's quarterly jobs market report tomorrow, a key release ahead of this month's monetary policy decision from the RBNZ.
  • Speaking of the Reserve Bank, Governor Orr warned today that the unsustainable level of house prices poses monetary and financial stability risks. He flagged that the RBNZ's view on house prices will be outlined in their Financial Stability Report, coming up tomorrow.
  • NZD/USD operates at $0.7181 as we type, 4 pips better off. A break above Oct 28/21 highs of $0.7217/19 would allow bulls to target Jun 7 high of $0.7243. Conversely, a dip through Oct 25 low of $0.7130 would shift bearish focus to the 200-DMA at $0.7101.

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