NZD/USD regains some earlier losses ahead of NZ inflation numbers

FXstreet.com (London) - NZD/USD remains in mildly bearish territory despite regaining some earlier losses. The pair fell slightly on weaker-than-expected New Zealand housing data. US markets are closed today which will limit price action before NZ inflation numbers.

RBNZ policies taking effect

REINZ house prices showed a fall of 1 percent month-on-month, falling from a 1.2 percent rise in November. Home sales fell 1.1 percent year-on year. While the numbers gave NZD a small knock, they show that the Reserve Bank of New Zealand’s loan-to-value ratio restrictions on residential property are having some intended consequences of deleveraging the Kiwi housing market.

NZ inflation numbers in focus

NZD focus will be on fourth quarter consumer price index numbers due at 21:45 GMT. With RBNZ macro-prudential policies seemingly having the desired effect, should inflation remain benign it will give the Kiwi central bank room to hold off on a further rate hike, undermining NZD strength in the medium term.

NZD/USD is currently trading at USD0.8253, rebounding from a session low at USD0.8224. The pair is down 0.05 percent on the session