New Zealand Dollar Trims Gains Following Earlier Rally

The New Zealand dollar rose today, though trimmed its gains versus the US dollar and the euro by now.

The ANZ business confidence fell from 24.5 to 20.5 in November, but the report was not pessimistic, saying:

 

The economy is still riding the wave: the level of firms’ own activity and profit expectations, together with employment and investment intentions, all flag strong growth.

The tide is still out when it comes to inflation, though some lift occurred in key measures this month.

The Reserve Bank of New Zealand released its Financial Stability Report overnight, expressing confidence and saying that “New Zealand’s financial system remains sound and continues to operate effectively.” At the same time, identified three key risks to financial stability: housing market vulnerabilities, bank funding pressures, and dairy sector indebtedness.

NZD/USD traded at 0.7146 as of 11:39 GMT today after opening at 0.7124 and rallying to the daily high of 0.7168. EUR/NZD dropped from 1.4938 to 1.4833 (the lowest level since May 2015) before bouncing to 1.4914.

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