AGL 5.60 Decreased By ▼ -0.18 (-3.11%)
ANL 8.90 Increased By ▲ 0.02 (0.23%)
AVN 76.85 Decreased By ▼ -2.07 (-2.62%)
BOP 5.26 Decreased By ▼ -0.02 (-0.38%)
CNERGY 4.63 Decreased By ▼ -0.07 (-1.49%)
EFERT 81.27 Decreased By ▼ -0.33 (-0.4%)
EPCL 50.08 Decreased By ▼ -0.83 (-1.63%)
FCCL 13.16 Decreased By ▼ -0.22 (-1.64%)
FFL 5.69 Decreased By ▼ -0.03 (-0.52%)
FLYNG 7.07 Decreased By ▼ -0.08 (-1.12%)
FNEL 4.79 Decreased By ▼ -0.03 (-0.62%)
GGGL 8.80 Decreased By ▼ -0.10 (-1.12%)
GGL 14.55 Decreased By ▼ -1.33 (-8.38%)
HUMNL 5.69 Decreased By ▼ -0.08 (-1.39%)
KEL 2.63 Decreased By ▼ -0.03 (-1.13%)
LOTCHEM 28.60 Decreased By ▼ -0.45 (-1.55%)
MLCF 24.49 Decreased By ▼ -0.61 (-2.43%)
OGDC 72.43 Decreased By ▼ -0.02 (-0.03%)
PAEL 15.36 Increased By ▲ 0.01 (0.07%)
PIBTL 5.00 Decreased By ▼ -0.05 (-0.99%)
PRL 16.10 Decreased By ▼ -0.19 (-1.17%)
SILK 1.08 Decreased By ▼ -0.01 (-0.92%)
TELE 9.14 Decreased By ▼ -0.23 (-2.45%)
TPL 7.23 Decreased By ▼ -0.10 (-1.36%)
TPLP 18.61 Decreased By ▼ -0.34 (-1.79%)
TREET 21.68 Decreased By ▼ -0.32 (-1.45%)
TRG 136.71 Decreased By ▼ -4.44 (-3.15%)
UNITY 16.88 Decreased By ▼ -0.14 (-0.82%)
WAVES 9.86 Decreased By ▼ -0.04 (-0.4%)
WTL 1.41 No Change ▼ 0.00 (0%)
BR100 4,225 Decreased By -29.6 (-0.7%)
BR30 15,518 Decreased By -214.7 (-1.36%)
KSE100 42,150 Decreased By -243.4 (-0.57%)
KSE30 15,588 Decreased By -75.7 (-0.48%)
Markets

Australia, NZ dollars hold gains, house prices run hot

  • The dovish outlook helped three-year bond futures rally further to 99.770, and away from a 12-month trough of 99.615 hit late last month.
Published March 11, 2021
Follow us

SYDNEY: The Australian and New Zealand dollars clung to gains on Thursday after a tame reading on US inflation provided a reprieve to risk appetite, while data on local housing markets stunned with its strength.

The Aussie was holding at $0.7725, having survived multiple tests of support around $0.7620/25 this week. Resistance lies at $0.7745, followed by a gap to $0.7810.

The kiwi dollar edged to $0.7191 and away from the week's trough at $0.7103, which now marks strong support. It faces resistance at $0.7200 and $0.7267.

Their US counterpart was undermined by a soft reading on core US inflation which saw Treasury yields ease back and calmed jitters in risk assets.

For Australia and New Zealand the prices that matter right now are for houses, and they are decidedly not soft.

Figures from New Zealand on Thursday showed national house prices jumped 5.2% in February, to be up a staggering 21.5% on a year earlier.

"You have to go back to the apex of the last nationwide property boom in 2004 to see house price appreciation this high," said Jeremy Couchman, a senior economist at Kiwibank.

Part of the jump was likely a by-product of buyers rushing to beat the May 1 re-imposition of loan-to-value restrictions on investors by the Reserve Bank of New Zealand's (RBNZ).

The boom has sparked calls for the central bank to raise interest rates from record lows, though so far it is resisting such pressure in favour of macro prudential rules.

Couchman said the bank was considering imposing debt-to-income ratios on borrowers, but needed approval from the government.

"DTI ratio restrictions for investors would likely apply a much bigger handbrake on the housing market, he added.

In Australia, house prices in Sydney passed their previous all-time high this week having risen 5.7% since October, according to data from property consultant CoreLogic.

Yet Reserve Bank of Australia (RBA) Governor Philip Lowe on Wednesday made it clear rates were unlikely to rise until 2024 at the earliest, and housing was better controlled through macro prudential measures.

The dovish outlook helped three-year bond futures rally further to 99.770, and away from a 12-month trough of 99.615 hit late last month.

Yields on 10-year bonds have edged down to 1.70%, from last month's top of 1.97%, but still remain 72 basis points higher for the year so far.

Comments

Comments are closed.

Australia, NZ dollars hold gains, house prices run hot

Rupee remains unchanged against US dollar

Giving the govt a chance, sit with us and call elections: Imran Khan

Oil ticks up ahead of OPEC+ meeting, EU Russian oil ban

PM Shehbaz condemns assassination attempt on Pakistani envoy in Kabul

OMCs take a hit as petroleum sales drop in Pakistan

India to continue buying Russian oil: ministry source

Imran Khan says Senator Azam Swati treated in 'vengeful manner'

Qurat ul Ain Fatima appointed new ECP spokesperson

OPEC set to stick or cut more amid plan to cap Russian oil price

Shafique and Haq give Pakistan solid start after England’s 657