Chart: WorldWideMarkets Alpha Trader
The Reserve Bank of New Zealand weighs its decision for implementing changes to residential property investors, which pushed the New Zealand Dollar lower on the dovish news. There is also speculation that the news could open the door to future RBNZ interest rate cuts.
Yesterday, the RBNZ is looking into the possibility of adding more capital requirements on residential property investors to guard against defaults should there be a housing crash.
The RBNZ will hold a month-long review on how to draw up the plan which will be announed by April 9. The central bank has been looking at this proposal since 2013 aimed to place controls on borrowers with five or more properties.
The Kiwi Dollar fell steadily from 0.7600 to 0.7485 on the chart.