RBNZ's Orr Reminds That Outlook Is Uncertain As Auckland Reports New Covid-19 Case

Although a round of comments from RBNZ's Hawkesby kicked NZD/USD higher in Thursday's Asia-Pac hours, the rate failed to cling onto those gains and sold off alongside other risk assets, as focus turned to the global coronavirus situation, deadlocked fiscal talks in the U.S. and fresh White House action against some Chinese firms. The pair snapped its eight-day bullish run, which saw it advance on every single day this month.

• New Zealand's BusinessNZ M'fing PMI deteriorated to 51.7 from 54.0, with accompanying commentary noting that the sector "remains in a state of flux". Elsewhere, food prices continued to grind lower.
• There was a new community transmission of Covid-19 in Auckland and officials are scrambling to trace the movements of the infected individual. RBNZ Gov Orr spoke with BBG this morning, warning that the detection of the new case reminds of the substantial uncertainty clouding the economic outlook.
• In addition, Orr reiterated confidence that the new FLP facility will be successful in reducing borrowing costs. He downplayed potential for the use of foreign asset purchases ("we don't believe it would have a significant impact") and suggested that the onus is on the gov't to address the problem of the booming housing market, as it it falls outside of the central bank's mandate.
• NZD/USD last trades at $0.6838, little changed on the day. Bears need fall below $0.6798, a former breakout level, to bring the 50-DMA at $0.6668 into play. Bulls need a clearance of Nov 12 high of $0.6915 before targeting $0.6939-42, which capped gains in 1Q2019.
• New Zealand's credit card spending comes out next Friday.