The New Zealand climbed today, recovering from yesterday’s speech of Graeme Wheeler, Governor of the Reserve Bank of New Zealand, who talked about the possibility of additional interest rate cuts.
Wheeler was delivering speech yesterday, close to the end of the trading session. He was not pessimistic, saying:
Recent economic indicators have been more encouraging.
Yet he still believed that additional rate reductions are possible:
Some further easing in the OCR seems likely but this will continue to depend on the emerging flow of economic data.
The New Zealand dollar ended yesterday’s session with losses, but reversed them today despite the prospects for more accommodative monetary policy. Disappointing news from China, New Zealand’s major trading partner, did not prevent the currency from rallying either.
NZD/USD gained 1.4 percent from 0.6639 to 0.6733 as of 12:28 GMT today. NZD/JPY leaped 1.3 percent from 79.46 to 80.52. EUR/NZD dived 1 percent from 1.7118 to 1.6942.
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