New Zealand Dollar Drops After Weak Housing Report

Talking Points:

• New Zealand REINZ House Sales Y/Y Comes in at -13.0%; Prior Month -6.1%
• New Zealand REINZ House Price Index M/M Comes in at -0.7%; Prior Month -0.3%
• New Zealand Dollar Drops as Poor Housing Data Delays Interest Rate Hike Expectations

The New Zealand Dollar fell sharply today as the Real Estate Institute of New Zealand reported its housing data for the month of July. The REINZ House Sales came in at -13.0 percent from a year earlier, reporting a greater fall than June’s -6.1 percent. The REINZ Housing Price Index was reported at 3885.5, lower than last month’s 3913.3. The House Price Index also fell by -0.7 percent month-on-month, printing even lower than 0.3 percent contraction seen in June.

The New Zealand Dollar likely traded lower because the weak housing report further delayed expectations for a rate hike from the Reserve Bank of New Zealand, after the central bank had earlier signaled a pause in rate hikes after their last policy meeting.

NZDUSD [15 mins – 08/12/2014] Chart created using FXCM Marketscope.