Falling Business Confidence Prevents NZ Dollar from Rally

The New Zealand dollar was little changed during the Thursday’s trading session as negative macroeconomic data from New Zealand prevented the currency from joining its Australian counterpart in a rally.
New Zealand Institute of Economic Research reported that business confidence fell to the lowest level since March 2011. The report attributed the pessimism to the downside inflationary pressure. This led to the outlook for an interest rate cut:

The weak inflation environment suggests further easing by the Reserve Bank – we expect one further interest rate cut by the end of this year.

As a result, the New Zealand dollar was unable to join its Australian peer in a rally even though the trading environment is favorable right now.
NZD/USD traded at about 0.6487 as of 13:51 GMT today following the rally from 0.6484 to 0.6515 earlier. NZD/JPY also traded not far from the open of 78.11.

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