Headlines from RBNZ stating they want to instate new rules to cut down on excessive property investment. Reaction from the market has put a Daily Candle on the chart. This has solidified the technical pattern with the break of 7520 area. Any pushes higher towards .7500 - .75500 will get a chance to get short in the pair. We have already seen the market turn, and are unsure about the NZDUSD appreciation due to China's growth at a slower pace which directly effects the New Zealand exporting market. The new rules to cut down on excessive property investment just adds fuel to the fire.
RBNZ has stated they will hold rates until 2016.
New Zealand is in a similar situation like the Australians - they want to combat rising home prices. One of the issues with a rate hike for RBNZ is it would limit .
Last reading came in at .80%. There target is between 1% - 3%.
The Markets appear to be slowly pricing the possibility of no rate hikes in 2016.
We do know that the Fed has stated that a rate hike is on the table, however we are not sure when this will happen. With reports that US capital spending is picking up, this makes USD the dominate currency in this pair.