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RBNZ Speak On Debt Serviceability Restrictions Scrutinised

NZD

NZD/USD went offered Thursday as the greenback regained poise after FOMC MonPol decision, while a pullback in oil prices applied pressure to commodity-tied FX. The rate fully reversed the prior day's gains and probed the water below its 200-DMA, which intersects at the round figure of $0.7100.

  • The pair trades flat at $0.7104 as we type, with bears looking for a clean break below the 200-DMA/Nov 4 low/Nov 2 low at $0.7100/95/93 would shift focus to the 50-DMA, which kicked in at $0.7062. On the topside, bulls need a jump above Oct 28/21 highs of $0.7217/19 to return into the driving seat.
  • RBNZ Dep Gov Bascand told interest.co.nz that the RBNZ would like to be in a position where it could apply debt serviceability restrictions to mortgage lending, but thus doesn't mean they will be applied straight away. He suggested that the Reserve Bank could loosen loan-to-value ratio restrictions (LVRs), which are set at "quite a tight level," if debt serviceability restrictions are introduced.
  • Local highlights next week include card spending (Tuesday), flash ANZ Business Confidence (Thursday) and BusinessNZ M'fing PMI (Friday).

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