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The Reserve Bank of New Zealand’s (RBNZ) Christian Hawkesby, Assistant Governor/GM Economics, Financial Markets and Banking,  has been crossing the wires again, in addition to earlier comments whereby an August rate cut has been described as a means to  avoiding more later.

Additional comments:  

  • August cut did not mean something bad had happened.
  • The economy is  in good shape and we are trying to keep it there.

Earlier in today’s Asian opening hours, Hawkesby said, “We need to keep rates at a low level for some time,’ adding, “Global risks are still to the downside.”

FX implications:  

There has been little to zero reaction to the comments today as the price of NZD/USD balances over the support of slightly bullish 21 and 50-day moving averages with price oscillating around 0.64 the figure. There is a focus on US and Chinese trade relations on an otherwise dormant domestic calendar for the week ahead.