NZD/USD: Muted response to RBNZ Governor Orr's comments

  • NZD/USD ignores RBNZ Governor Orr's comments on house prices. 
  • The monetary and financial policies alone cannot solve property issues, according to Orr. 
  • New Zealand's government has proposed adding property prices to central bank's remit. 

Reserve Bank of New Zealand's (RBNZ) governor Adrian Orr was out on the wires soon before press time, pushing back against the government's proposal to add property prices to the central bank's remit. 

"While house prices are an important channel that affects inflation, the monetary and financial policies alone cannot solve property issues," Orr said, while adding that lower interest rates promote spending and investment. 

Orr's comments come after Finance Minister Grant Robertson said the central bank should think about out-of-control house prices. Robertson's remarks put a strong bid under the NZD, lifting the NZD/USD pair from 0.6939 to 0.6989

So far, however, Orr's comments have not had a sizeable impact on NZD/USD, leaving the currency pair unaffected near 0.6970. The pair pulled back from the session high of 0.6989 ahead of Orr's comments. 

The odds of RBNZ cutting rates to negative territory have declined over the past few weeks, with New Zealand's relative success in controlling the second wave of coronavirus. 

If implemented, Robertson's recommendation would dash hopes for additional easing in the form of negative rates or bigger bond purchases, as the property prices have soared this year in the wake of coronavirus pandemic and record-low borrowing costs. 

Technical levels


Today last price 0.697
Today Daily Change 0.0048
Today Daily Change % 0.69
Today daily open 0.6922
Daily SMA20 0.6794
Daily SMA50 0.6698
Daily SMA100 0.666
Daily SMA200 0.642
Previous Daily High 0.6969
Previous Daily Low 0.6897
Previous Weekly High 0.6952
Previous Weekly Low 0.6841
Previous Monthly High 0.6726
Previous Monthly Low 0.6546
Daily Fibonacci 38.2% 0.6941
Daily Fibonacci 61.8% 0.6924
Daily Pivot Point S1 0.6889
Daily Pivot Point S2 0.6857
Daily Pivot Point S3 0.6817
Daily Pivot Point R1 0.6962
Daily Pivot Point R2 0.7001
Daily Pivot Point R3 0.7034



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