FXStreet (Guatemala) – Analysts at ANZ noted that the week ahead is a busy one for domestic data and events in New Zealand.
“The main focus is likely to be the RBNZ’s Financial Stability Report (FSR), where the soundness of the financial system, and the risks it is facing, will be discussed. While the Report will no doubt reiterate that the financial system is generally sound, it is the discussion on the various risks and vulnerabilities facing the economy, and the degree of concern the RBNZ is showing with regard to those risks, that will be of most interest to us and the market.
At its most recent Report in May, the RBNZ singled out three specific areas of risk of which it was mindful:
High household debt and sharply rising Auckland house prices (from already elevated levels).
Dairy sector stress, with low incomes meeting elevated (albeit concentrated) levels of debt.
Loose global financial conditions and the prospect that a tightening could prove destabilising for financial markets and asset prices.
We have little doubt that these factors will remain concerns. In fact, it is possible that the degree of concern could have increased since the May Report. “
Analysts at ANZ noted that the week ahead is a busy one for domestic data and events in New Zealand.
(Market News Provided by FXstreet)