The NZD/USD rate is at a new low of around 62. The year-to-date average is 65. The retail sales report is expected to come out at the end of this month. It will be interesting to see how the housing markets in Australia and New Zealand fare.
Recently, in an effort to help stimulate the economy, the Australian government has announced plans to tax second homes, such as villas, second houses and apartments. Australia is expecting the sales tax will raise A$5 billion. This will help boost the economy and it appears the plans are working. However, many expect that the Aussie dollar will rise higher and the Australian dollar will weaken against the U.S. dollar.
When the Australian dollar rises, that means that a currency can appreciate. If that happens, then any investor that wants to sell their property would pay more for the property and may not want to sell it for less.
In the meantime, it appears that the Australian housing markets are struggling and may be on the brink of a downturn. On the other hand, the housing markets in New Zealand and New South Wales are doing well and are expected to continue their upward trend. That would mean that they would remain strong and increase.
One advantage for the Australian economy is that it can boost exports and revenues because the manufacturing sector is one of the biggest exporters. As the Aussie dollar rises, that means that the Aussie dollar is appreciating in value versus the U.S. dollar.
So, that means that this will increase the competitiveness of that country, which is seen as one of the biggest exporters. It also means that the Australian economy is showing a lot of strength. For a country that exports over 75% of its goods, this is a good thing.
Right now, the Australian dollar is too strong and the Australian government can’t afford to let it go much lower. Therefore, the local bank customers are holding on to their money.
In the United States, there is no question that the strength of the U.S. dollar is helping the housing markets here. If you are a homeowner and are worried about how much you should pay for your house, now would be a good time to sell. But if you are buying or refinancing a house, you need to watch out because there are ways that people are buying houses and not selling them when the rates get low.
So, what you need to do is be patient and if you are buying a house, wait until the rates are lower. There is no reason for you to make a decision because the prices have gone too high.
If you are buying a house, don’t wait until the rates go lower so that you are able to get a great deal on your new homes. Also, don’t think that the Aussie dollar will stay high for long and then it will soon fall.
The people who are selling houses at the moment are betting that the U.S. dollar will not appreciate enough to make it worthwhile to buy your home. The one thing you can count on is that the U.S. dollar will appreciate because of the global trade.
At the same time, it is good for your local currency to appreciate and the U.S. dollar is a good way to be sure that your rates are going up. I hope you take the right decisions because there are things you need to do to make sure that you are going to be OK financially.