NZD/USD spikes after RBNZ Financial Stability Report

Reserve Bank of New Zealand offered their Financial Stability Report where the housing market and dairy markets were highlighted as the major risks to stability.

As a result of the report, the bird is bid and this is all too familiar - the bird catches a bid on less than bullish news. Within the report, and alarming so, it explains that risks to financial stability outlook have increased, especially in the prospects of a sharp slow-down in housing while levels of problem loans in the dairy sector are also expected to increase significantly.

NZD/USD levels


Meanwhile, the bird was up to test the 100 sma at 0.6828 and in an extension in an upbeat commodity sector on Wall Street overnight, supported by the 20 sma on the same time frame located at 0.6749 on the downside. The major target for the bird is located at the 200 sma on the 4hr sticks at 0.6878 and a break there to the 0.69 handle exposes late March high at 0.6966