The Kiwi Dollar opens lower this morning, touching on a new 4 year low vs the USD. Weighing on the NZD was a broadly stronger U.S Dollar, and another disappointing business confidence survey released yesterday. The main focus today will be the Reserve Bank of Australia and their decision on interest rates, due out at 5.30pm tonight.
Business Confidence Hits 11 Year Low
The ANZ business confidence survey for September saw headline confidence fall by 2 points to an 11 year low. 54% of respondents expect general business conditions to deteriorate in the year ahead. This is despite the recent 50bps cut in the official rate cut by the Reserve Bank, which appears to have done little to improve the general outlook. The Kiwi Dollar dipped after the result and has remained at these low levels to start the day.
All Eyes on RBA
The Reserve Bank of Australia is widely expected to cut interest rates by 25bps to 0.75% later this afternoon. Following on from the decision will be a speech from RBA Governor Lowe at 10pm this evening in Melbourne.
The USD was generally firmer against most currencies overnight. Philadelphia Federal Reserve Bank President Patrick Harkar said in New York that he opposed the central bank’s September rate cut and stated that the Fed should “hold firm” on interest rates.
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