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  • NZD/USD jumps 20 pips to hit a high of 0.63 on RBNZ Governor Orr’s upbeat comments.  
  • Orr believes unconventional policy tools may not be needed to support the economy.  

The already bid NZD/USD pair is extending gains on comments by the Reserve Bank of New Zealand’s Governor Orr that New Zealand may not require unconventional monetary policy easing.  

Speculation has gathered steam over the last couple of months that both RBNZ and the Reserve Bank of Australia (RBA) are likely to hit the zero lower bound and start purchasing government bonds (quantitative easing).  

Orr, however, believes the RBNZ may not need such unconventional tools. The Governor also said New Zealand is in a sound position to benefit from the global low rate environment.  

Orr’s upbeat comments have strengthened the bid tone around the Kiwi. The NZD/USD pair has added 20 pips or so in the last few minutes to hit a session high of 0.63, having clocked a low of 0.6267 in the early Asian trading hours.  

Technically speaking, a close above 0.6348,  the high of Wednesday’s bearish engulfing candle, is needed to confirm a bullish reversal. That, however, looks unlikely with the US 10-year treasury yield rising almost eight basis points on Wednesday despite President Trump’s impeachment inquiry.  

Technical levels