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Kiwi gains after RBNZ holds OCR steady at 1.75%

6/22/2017, 9:53:11 AMBasics of Trading
 Kiwi gains after RBNZ holds OCR steady at 1.75%

The kiwi rose after the Reserve Bank of New Zealand held interest rates steady at 1.75% as expected on Thursday with the growth outlook noted even as the central banks said policy would remain accomodative.

NZD/USD rose 0.69% to 0.7256 after the announcement. Elsewhere, USD/JPY was last quoted at 111.35, down 0.03%, while AUD/USD traded at 0.7552, up 0.01%.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 97.33.

Overnight, the dollar steadied against a basket of global currencies, after data showed sales of existing U.S. homes unexpectedly rose in May while a surge in the pound limited upside momentum.

The National Association of Realtors said strong demand and inexpensive mortgages were driving up prices at an unsustainable rate, as sales of existing homes rose 1.1% in May to an annual rate of 5.62 million.

Analysts had forecast U.S. existing home sales to decline by 0.5%.

The unexpected increase in existing home sales spurred sentiment on the dollar, after the greenback fell to session lows pressured by a surge in the pound, following bullish comments on an interest rate hike from the Bank of England chief economist Andy Haldane.

Haldane said he might join those calling for a rate rise in the coming months, adding that a “partial of withdrawal” of the additional policy measures would be prudent “relatively soon."