On Friday, the New Zealand dollar posted a slight gain due to low volume due to bank closings on Good Friday. Although buyers may have been a little hesitant about current price levels due to the low volume, the market remained supported by aggressive monetary movements from the Federal Reserve and growing demand for risky assets, which mitigated the need of American dollars.
NZD / USD settled at 0.6094, up 0.0013 or + 0.22%. “data-reactid =” 20 “> On Friday, the NZD / USD settled at 0.6094, up 0.0013 or + 0.22%.
RBNZ Orr says central bank can support economy
While most investors focused on the Fed and demand for risk, Governor of the Reserve Bank of New Zealand (RBNZ), Adrian Orr, said the central bank can support the economy for as long as it takes through quantitative easing and other tools.
“The Reserve Bank can maintain monetary support for as long as necessary using QE and other tools,” Orr wrote in an opinion article in the April 5 Sunday Star Times. He said New Zealand is in an “enviable global fiscal position with a headroom” and the activities of the RBNZ will allow the country to prosper for generations to come.
“We are all going through troubling times and we still have a lot to do,” he wrote. “Some businesses will fail, unemployment will rise and banks will sometimes have to judge whether a business is illiquid or insolvent when it makes a financing decision.”
Orr also stressed the importance for companies to work with their bankers and to understand and use government support programs.
“Support each other, think beyond the next six months and visualize the role you can and will play in New Zealand’s dynamic, refreshed, sustainable and inclusive economy,” wrote Orr.
New Zealand Premier Cautiously Optimistic About Coronavirus Urges Easter Staycation
New Zealand Prime Minister Jacinda Ardern said on April 8 that she was cautiously optimistic about the slowdown in the spread of the new coronavirus, with authorities reporting the lowest number of new daily cases in two weeks.
“We can still see bumps along the way, but I remain cautiously optimistic that we are starting to take a turn,” Ardern said at a press conference in Wellington.
She also said that there were no plans to relax the strict restrictions during Easter and urged everyone to avoid travel during the long Easter weekend in mid-April.
“Please stay at home, stay to save lives and enjoy your” stay, “” Ardern told Wellington.
“Nothing changes because it’s Easter, the rules stay the same and the police will apply them.”
At present, buyers of the New Zealand dollar are mainly driven by the weakness of the US dollar and the aggressive movements of the Federal Reserve which continue to make US dollars available. Traders are also drawn by the weakening employment situation in the United States, which is expected to worsen in the near term.
The daily chart indicates that purchases could strengthen after last week’s upward trend change and the closing of the strong side of a 0.6074 to 0.5958 retracement area. The Kiwi is expected to continue growing longer as long as it remains on the bullish side of this area.
article was originally published on FX Empire “data-reactid =” 36 “> This article was originally published on FX Empire