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NZD USD Price Forecast Rises as US CPI in Focus
Confirmed
In Short: The New Zealand Dollar (NZD) has risen 0.13% against the US Dollar (USD) while investors await the US Consumer Price Index (CPI) data for August, which could influence monetary policy decisions.
The New Zealand Dollar (NZD) has risen 0.13% against the US Dollar (USD) during the European trading session on Wednesday, remaining within Tuesday's trading range. Investors are closely watching the upcoming US Consumer Price Index (CPI) data for August, which could impact monetary policy decisions.
Meanwhile, the US Dollar (USD) gained ground on Tuesday due to a fresh increase in energy prices, which heightened concerns about persistent inflation. This has also put pressure on Sterling (GBP), as higher energy costs contributed to a sell-off in UK government bonds.
The housing market in the US is cooling as summer draws to a close, with some cities experiencing larger price decreases to attract buyers. Home sellers are reducing prices to meet buyers, particularly in metro areas that saw significant price growth during the pandemic.
According to an analysis by Realtor.com, the price per square foot decreased year over year for the 10th straight month in August, with nationwide prices down 1.8% from a year ago. The median list price per square foot fell in 36 of the top 50 metro areas in the US in August compared with a year ago.
In Canada, the job market took a downturn in August, with the country losing nearly 42,000 jobs against forecasts for a 15,000 gain, and the unemployment rate staying at 6.4%.
What's still developing
- Investors are concerned that another sharp increase in energy costs could feed into consumer and producer prices, potentially forcing central banks around the world to maintain or even tighten restrictive monetary policy for longer.
- The latest increase in borrowing costs presents another challenge for Chancellor John Healey, as higher debt-servicing expenses could put additional strain on government finances and further reduce the Treasury's limited fiscal headroom ahead of October's Budget.
- AUD/USD is extending its consolidative price action above 0.7200 during the Asian session on Wednesday, uninspired by hot Chinese CPI and PPI data.
- Circle Squared Alternative Investments founder Jeff Sica discusses Fed Chair Kevin Warsh’s hawkish rate outlook and the housing market on ‘Varney & Co.’ The housing market is cooling as summer draws to a close and begins to transition into fall, with some cities around the U.S. seeing larger price decreases to attract buyers.
- Around the country, median list prices fell year over year in three of the four major regions in the country (-3.6% in the Northeast, -2.6% in the South, and -2.1% in the West), and remained flat in the Midwest.
- The median listing price in the city remains high at $908,700, even though it has decreased by 5.2% year over year.
- "On the flip side, this year there are relatively more large, less expensive per-square-foot homes coming up for sale in outer suburbs." Other metro areas that experienced the biggest annual declines in listing price per square foot in Realtor.com's analysis include San Antonio (-3.6%); Denver (-3.4%); Baltimore (-3.2%); San Diego (-2.7%); Orlando (-2.6%); and Portland, Oregon, (-2.4%).
- Fuel oil deficit forecast at 218,000 barrels per day in third quarter as Middle East exports plunge 45%; Singapore bunker prices have risen 76% since Iran war began LONDON: A global shortage of fuel oil used by ships and power plants is looming in the third quarter as war-related refinery and shipping disruptions constrain supplies, while refiners increasingly divert fuel oil towards producing more profitable diesel, gasoline and jet fuel.