RBNZ’s Orr: Economic activity since Aug more resilient than earlier assumed

Dhwani Mehta FXStreet

“The economic activity since August domestically and internationally has been more resilient than earlier assumed,” said the Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr while speaking at the post-monetary policy decision press conference on Wednesday.

Additional quotes

“Inflation and employment have been below target for a long time. “

“We expect banks to lend responsibly and avoid undue risks.”

“We are starting from a better position because the domestic economy has proved more resilient.”

“At this point it still is important that credit is widely available, spending and employment is promoted.”

“Expects to see pass through in lending rates to be full and wholesome.”

Separately, an RBNZ official said that the size of FLP program NZD28 billion.

Market reaction

NZD/USD extends the post-RBNZ decision rally towards 0.6900 on the upbeat comments from Governor Orr.

The spot jumps 0.60% to the highest levels since April 2019 at 0.6869, as of writing.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD looks weak below 1.1800

EUR/USD has slipped back under pressure, breaking through the 1.1800 support and drifting towards the weekly lows near 1.1770 ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with steady geopolitical tensions keeping its demand firm. Moving forward, the release of the German labour market report and flash inflation figures should keep European investors entertained on Friday.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.