Breaking: RBNZ’s Orr says OCR will remain at 0.25% until next year, Kiwi jumps towards 0.6900

FXStreet Team FXStreet

Commenting on the prospects of negative interest rates, the RBNZ Governor Adrian Orr said that the Official Cash Rate (OCR) will remains at a record low of 0.25% until next year.

Additional quotes

“Too early to tell if the possibility of negative rates decreased following the FLP and LVR review.”

“Our commitment to keeping OCR unchanged until March stays.”

Market reaction

The buying interest around the NZD/USD pair remains unabated on the upbeat and less dovish comments from the RBNZ Governor Orr, given his take on the negative interest rates.

The kiwi surges 0.80% to fresh 20-month tops of 0.6885, closing in on 0.6900, at the press time.

Related reads

Author

FXStreet Team

FXStreet

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.