RBNZ: Domestic financial markets have stabilized, will be reducing TAF interventions to weekly from daily

During the initial hour of New Zealand trading session on Wednesday, the Reserve Bank of New Zealand (RBNZ) joined the league of upbeat news providers. The central bank cited recovery in the domestic financial markets to announce the trimmed frequency of market intervention via Term Auction Facility (TAF).

Key quotes

Domestic financial markets have stabilized.

Need to provide enhanced liquidity has diminished.

Will be reducing TAF interventions to weekly from daily.

FX implications

Despite being a positive news, NZD/USD barely moved after the release while taking rounds to 0.6645-40. Though, the quote remains near the highest in six months flashed the previous day.