RBNZ Gov. Orr: $60b is a cap not a target for QE

Reserve Bank of New Zealand Adrian Orr is crossing the wires and has said the $60b is a cap not a target for QE.

Key comments

Bank has a lot of work ahead to acheive policy goals. 

More to come...

NZD/USD update

NZD/USD is back below 0.60 with a stronger USD on Wednesday following Jerome Powell, Fed Chairman, who was delivering his remarks on the current state of the US economy at an event organized by the Peterson Institue for International Economics. Powell said that all FOMC members are against negative rates and were not being considered. The divergence between the RBNZ and Fed is likely to weigh on the bird for the foreseeable future. 

"The RBNZ has adopted a “least regret” approach, suggesting it might even purchase foreign assets, and with daylight between the outlook for inflation and unemployment they have been right to make the entire toolkit available, and that will weigh on the NZD long term," analysts at ANZ Bank argued – "And New Zealand needs a lower NZD if it is to make an export-led recovery."