NZD: confidence is key
RBNZ Governor Orr gave NZD a boost yesterday with not seeing the need for unconventional monetary policy and being satisfied with a 50bps rate cut.. However, consumer confidence last night was down to 113.9 for September, which is down from 118.2 previously,
The next data point to watch is the business confidence reading out on Monday. The RBNZ pay attention to this for setting their rate, so expect a focus from the market. Weak business confidence on Monday: NZD weakness and probably a re-pricing as the market goes at odds with Orr’s assessment.