Monday was a relatively quiet day in terms of economic data and releases. The most noteworthy developments were Adrian Orr’s appointment as the new RBNZ Governor, and Theresa May’s letter to her parliamentary party.
NZD Soars as Adrian Orr Takes Charge of the RBNZ
Kiwi surged yesterday, and actually finished the day as the main winner against the US dollar, after the RBNZ announced Adrian Orr as its new Governor. Orr is a former deputy governor and chief economist at the RBNZ and he is expected to begin its 5-year term on the 27th of March.
While it is not clear where he stands in the hawk-dove scale, he is considered to have the knowledge and ability to take charge at a time where the RBNZ faces big challenges. Remember that among other pledges, the new Labour government announced that it is seeking to reform the RBNZ act. The government wants the Bank to adopt a mandate similar to that of the Fed, meaning to focus on both full employment and inflation.
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