RBNZ’s Orr: No urgency to further easing at this point

Dhwani Mehta FXStreet

More comments are crossing the wires from the RBNZ Governor Orr, as he now responds to the Q&A session.

Predicting the economy to pick up in new year.

Policy stimulatory will be for a long time, will act again if necessary.

No urgency to further easing at this point.

Ups and the downs in economic data since the August statement broadly offsetting each other.

If circumstances change, "we will act".

Not our intention to surprise markets but market expectations have been moving around a lot.

Long term inflation expectations are well anchored.

Plans update on framework for unconventional tools -will outline the types of tools in early 2020.

Monetary policy is effective, we are seeing their effects coming through.

No urgency to use unconventional tools.

Any sense of needing to have unconventional monetary policy tools is a precaution.

Meanwhile, the RBNZ Assistant Governor Christian Hawkesby said that “data will determine what we do”.

The Kiwi keeps its range around the 0.6400 level, unable to clear the 0.6420 confluence zone despite Orr’s slightly hawkish comments.

NZD/USD Technical Analysis: Stays below 0.6420 resistance confluence after RBNZ’s Orr

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 deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.