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NZD/USD Price Forecast: Rises in Limited Range with US CPI in Focus
Confirmed
In Short: The New Zealand Dollar (NZD) has risen 0.13% against the US Dollar (USD) as 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 inflation persisting globally. This has also put pressure on Sterling (GBP) and contributed to a sell-off in UK government bonds.
The housing market in the United States is cooling as summer draws to a close, with some cities experiencing larger price decreases to attract buyers. Higher mortgage rates are contributing to affordability challenges, 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 in the city remains high at $908,700, down 5.2% year over year, with significant declines seen in several major metro areas.
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.
- "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%).
- Canada lost nearly 42K jobs in August against forecasts for a 15K gain, and the unemployment rate stayed at 6.4% anyway.