NZD/USD: drops heavily on RBNZ expectations and housing alerts

Governor Wheeler has announced that risk of house price correction increasing across NZ. NZD/USD dropped sharply from 0.7115 to 0.7041 lows. 

The drop came as the RBNZ announced proposed changes to housing investment restrictions as the Central Bank battles with a deflationary environment and the market expects rate cuts to come. We now await the GDT dairy auction tonight that analysts at Westpac suggested should result in a 1% rise in WMP prices, according to the futures market.

NZD/USD levels

NZD/USD has fallen sharply from the resisting 20 sma on the 1hr chart and has broken the 30th Junelows, with 0.7020 and 0.6980 as next stops. The 50 sma is at 0.7125 is near term key resistance with 0.7150/80 last defenses for the 0.72 handle where the 200 sma resides on the same 1hr sticks at 0.7214.