The New Zealand dollar tumbled today after macroeconomic data showed that the business confidence deteriorated and the number of building consents fell.
ANZ Business Confidence Index dropped to -50.3 in August from -44.9 in July. The report commented on the result:
Headline business confidence fell a further 5 points in August, but firms’ views of their own activity were steady.
Manufacturing is now the least confident sector â likely a lagged impact from construction sector woes. The services sector is the most optimistic.
Activity sub-indicators remain weak. This month we take a closer look at the implications of weak investment and employment intentions, and conclude the threat to near-term activity is real.
Statistics New Zealand reported that the seasonally adjusted number of building consents dropped 10% in July following the 8.2% drop in June.
NZD/USD slumped from 0.6709 to 0.6649 as of 15:20 GMT today. EUR/NZD rallied from 1.7437 to 1.7527, and its daily high of 1.7596 was the highest since October 2015.
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