NZ Dollar Moves Back and Forth amid Conflicting Fundamentals

The New Zealand dollar was volatile today amid clashing fundamentals. The currency started the session weak due to soft domestic macroeconomic data but rebounded after the market sentiment improved. Currently, though, the kiwi pulled back once again but retained gains versus safer currencies.
The ANZ Business Confidence worsened to -52.3 in August from -44.3 in July. It was the lowest reading since August 2008. The report said:

Employment, investment and export intentions all fell to dismal levels, along with profit expectations. Inflation indicators were weaker despite higher reported costs.

China signaled that it is not going to respond to the latest US tariffs immediately and want instead to negotiate, preferably avoiding escalation of the trade conflict. The news bolstered the market sentiment, making traders more interested in riskier commodity currencies.
NZD/USD dropped from 0.6334 to 0.6315 as of 16:49 GMT today. EUR/NZD went up from 1.7480 to 1.7497, while its daily high was at 1.7572 and the low was at 1.7440. NZD/JPY went up from 67.20 to 67.30, rebounding from the session minimum of 66.76.

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