FXStreet (Guatemala) – NZD/USD is currently trading at 0.7150 with a high of 0.7156 and a low of 0.7145.
NZD/USD has struggled at the 0.7200 cap while the RBNZ is looking more dovish and there remain nerves on a minor recovery at this juncture ahed of the RBNZ next week. For now, there is little to attention on for the bird this week domestically, while focus will remain with the Global dairy trade index that dropped yesterday 4.3%, the 6th consecutive drop, pushing prices to 6 year lows and prices in Q2 are now down 16%. We do have the Q1 Construction that will wrap up the week ahead of Nonfarm Payrolls from the US.
Recently, and back to New Zealand, the RBNZ published a consultation paper regarding LVR rules for loans to Auckland property investors. Analysts at TD Securitied explained that the Bank estimates that imposing a 30% deposit will reduce Auckland sales by 8% and trim prices between 2-4%. “The current time line sees the consultation period ending 13th July, with the final policy position to be revealed in August and revised rules to take effect from 1st Oct. We do not expect a rate cut next week.”
(Market News Provided by FXstreet)