NZ Dollar Fails to Hold Ground After Business Confidence Worsens

The New Zealand dollar fell today, declining for the second consecutive day versus the US dollar and the Japanese yen. The currency was attempting to hold its ground at the beginning of the trading session but resumed the downward movement after the report showed a drop of the business confidence.

The ANZ business confidence slipped from 19.4 in July to 18.3 in August. Yet the report was not particularly pessimistic, saying:

We’re seeing healthy readings for confidence, activity expectations, profitability, investment and employment across all sectors and regions. That’s a broad-based economic expansion in operation.

As for the drop, it said:

Business confidence was largely unchanged on last month; the headline was down a tad but seasonally adjusted estimates were up.

NZD/USD fell from 0.7199 to 0.7140 as of 13:13 GMT today, trading near the lowest since June 6. NZD/JPY declined to 78.92 after opening at 79.33 and rising to the daily high of 79.61.

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