The New Zealand dollar fell today as negative domestic macroeconomic data and the risk-off market sentiment drove the currency down.
The ANZ Business Confidence improved to -32.0 in May from -37.5 in April. All sectors remained deeply in the negative territory, though, indicating that New Zealand’s economy does not fare well.
Indeed, the report said:
The economy has cooled considerably over the past couple of years.
It also mentioned probability of an interest rate cut from the Reserve Bank of New Zealand:
But how quickly the economy will bounce back is a key question. If the forward indicators start to suggest that the Reserve Bankâs relatively sharp V-shaped recovery is overly optimistic, it will be game on for further OCR cuts this year.
NZD/USD dropped from 0.6541 to 0.6518 as of 00:06 GMT today. EUR/NZD advanced from 1.7054 to 1.7103. NZD/JPY slid from 71.54 to 71.25.
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