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18 May 2015
NZD/USD: Vulnerable near Friday's low
FXStreet (Bali) - The New Zealand Dollar has come under selling pressure right from the get go in Asia, as market participants react to the latest measures by the NZ government, which over the weekend, announced a tighter tax rules on Auckland residential property.
As ANZ wrote: "The existing rule on taxing income from property trading now has broader criteria: the IRD no longer has to prove the property was bought with the intent of selling for capital gain; rather, a non-owner occupied property sold within 2 years will simply be assumed to have been bought for that purpose (with some exceptions, eg inheritance and relationship break- ups). The new rules take effect on 1 October, the same day the new RBNZ lending restrictions kick into play."
NZD/USD is last quoted around 0.7440, over 30/35 pips lower from its last NY close, and just a whisker away from breaking Friday's low at 0.7428, an event that may allow an attack towards next horizontal level at 0.7420 (May 13 swing high) ahead of 0.74. On the upside, 0.7450 up to 0.7450/55, 0.7470/75 represent the main hurdles to the upside before a potential run towards 0.75.
As ANZ wrote: "The existing rule on taxing income from property trading now has broader criteria: the IRD no longer has to prove the property was bought with the intent of selling for capital gain; rather, a non-owner occupied property sold within 2 years will simply be assumed to have been bought for that purpose (with some exceptions, eg inheritance and relationship break- ups). The new rules take effect on 1 October, the same day the new RBNZ lending restrictions kick into play."
NZD/USD is last quoted around 0.7440, over 30/35 pips lower from its last NY close, and just a whisker away from breaking Friday's low at 0.7428, an event that may allow an attack towards next horizontal level at 0.7420 (May 13 swing high) ahead of 0.74. On the upside, 0.7450 up to 0.7450/55, 0.7470/75 represent the main hurdles to the upside before a potential run towards 0.75.