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  • NZD/USD rises to levels last seen 14 months ago. 
  • The RBNZ is not concerned about NZD’s appreciation. 
  • The kiwi has rallied by over 1,200 pips since March.

NZD/USD continues to gain altitude with the Reserve Bank of New Zealand’s (RBNZ) governor Orr, stating that the central bank is not concerned about the exchange rate. The pair is currently trading at 0.6781, the highest level since July 2019. 

The Kiwi bottomed out near 0.55 in March and has rallied by over 1,200 pips ever since. As such, markets were speculating until early Wednesday that the RBNZ could talk down the exchange rate. 

However, Orr refrained from jawboning the exchange rate, inviting more substantial buying pressure for the NZD.  Readers should note that Orr reiterated a willingness to boost stimulus if necessary and kept the doors open for foreign QE and negative rates. The markets, however, ignored the dovish talk. 

And yet Orr’s comments on the exchange rate may not be the only reason for NZD’s uptick. The Kiwi’s rise could also be associated with the upbeat New Zealand export price index for the June quarter released early today. 

Technical levels

 

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