Summary:
- US homes sales unexpectedly decline
- Fed chair Powell talking in Portugal with positive comments
- USD gaining on the day
It’s been a relatively quiet day on the data front with the only macro data from the US this afternoon the latest housing figures which missed forecasts. A reading of 5.43M for existing home sales in May is a little on the soft side, with consensus calling for 5.52M and a prior reading of 5.45M (revised lower from 5.46M). Comparing this metric to the number of housing permits in YoY terms there’s a bit of a divergence of late with the former falling while the latter rises. 
Existing home sales missed forecasts for May and extends its recent downtrend while opening up a divergence with the housing permits numbers. Source: XTB Macrobond
While the data is a little soft it is unlikely to have much impact on the market with the focus being more on the Central Bank Forum currently taking place in Portugal. A panel consisting of the Fed, ECB, BOJ and RBA governors have been commenting on the global economy as well as monetary policy. Fed Chair Powell has made the following comments which seem to be on the hawkish side and support the mild rise already seen in the US dollar so far today.
- Case for continued gradual hikes is strong
- US economy is performing very well
- Job market likely to strengthen further
- Fiscal stimulus expected to boost demand over the next few years
- Still Accommodative, Could Be 100Bps Below Neutral
The NZDUSD has fallen once more this week and the market is not far from a prior support region above 0.6788. This level has provided a floor for over two years and is being retested once more. Source: xStation