New Zealand NZD

New Zealand RBNZ Gov Orr Speech

Impact:
High
Source: Reserve Bank of New Zealand

Next Release:

Date:
Period:
What Does It Measure?
The speech by Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr primarily measures monetary policy direction and economic sentiment as articulated by the central bank's leadership. It assesses issues related to interest rates, inflation, economic growth, and financial stability, providing insights into the RBNZ's views on the New Zealand economy.
Frequency
Governor Orr’s speeches typically occur periodically, aligned with major economic reports or policy announcements, and there is no fixed schedule for such addresses, making their release timely and often unanticipated.
Why Do Traders Care?
Traders monitor Governor Orr's speeches closely as they can significantly influence market sentiment and expectations regarding future monetary policy, notably affecting the New Zealand dollar (NZD), bonds, and equities. A more hawkish tone may generate bullish sentiments for the NZD and stocks, whereas a dovish stance can lead to bearish outcomes.
What Is It Derived From?
The content of the speech is derived from extensive analysis conducted by the RBNZ on various economic indicators, including inflation rates, unemployment figures, and GDP growth, reflecting both quantitative data and qualitative assessments made by economists and financial analysts within the bank.
Description
Governors' speeches typically serve as platforms for conveying the RBNZ's economic outlook and policy stance, influencing market perceptions and investor behavior. Since these speeches can be revised based on new information or economic conditions, their messages are often analyzed for hints towards prospective interest rate changes and broader financial implications.
Additional Notes
Governor Orr’s speeches can act as coincident indicators, reflecting the current economic environment and its challenges. They are also pivotal for traders as they provide context for upcoming monetary policy decisions and can relate to similar communications from other central banks, offering comparative insights.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for NZD, Bullish for Stocks. Dovish tone: Signaling lower interest rates or economic support, is usually bad for the NZD but good for Stocks due to cheaper borrowing costs.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise