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NZD/USD: Recovery capped below 0.7200 after New Zealand Budget


May 20, 2021 04:16 GMTFXStreet News
NZD/USD pokes intraday high following the upbeat NZ budget speech.
New Zealand budget forecasts improvement in economics, fiscal conditions going forward.
Market sentiment dwindles as tapering, trade fears battle vaccine hopes, stimulus expectations.
Risk headlines remain the key, US data can also provide fresh impulse.
NZD/USD picks up bids to 0.7170, up 0.05%, after New Zealand Finance Minister Grant Robertson unveiled the annual 2021 budget early Wednesday. In doing so, the quote struggles to overcome the previous day’s losses but risk aversion mood tests the pair’s immediate upside.
New Zealand (NZ) Finance Minister Robertson said, “Long-term effects of pandemic not as severe as previously thought” while releasing the annual budget for 2021. The key financial statement upwardly revised the GDP forecast from its Half Year Economic Forecast Update (HYEFU) while also expecting a gradual reduction in the fiscal de ....

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New Zealand 2021 Budget Focuses On Securing Recovery


New Zealand 2021 Budget Focuses On Securing Recovery
New Zealand Finance Minister Grant Robertson announced the Budget 2021 on Thursday, giving thrust to spending and in bringing the economy back to pre-COVID levels. “This year’s Budget is still in the shadow of COVID-19, and its focus is to secure our recovery from its impact,” Robertson said in his speech. The economy is forecast to grow 2.9 percent this year.
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How RBNZ pump-primed the property bubble


How RBNZ pump-primed the property bubble
at 10:20 am on May 6, 2021 | 1 comment
New evidence has emerged showing that the Reserve Bank of New Zealand (RBNZ) played a direct role in inflating New Zealand’s property market, which has experienced its strongest price growth in decades.
New Zealand property prices have gone vertical.
In April 2020, the RBNZ removed loan-to-value (LVR) mortgage restrictions to stimulate the economy amid COVID-19 lockdowns, which in the words of the RBNZ was followed with
“a rapid acceleration in the housing market, with new records being set for the national median price, and new mortgage lending continuing at a strong pace”. ....

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