NZD/USD gains on positive business sentiment – BBH

NZD/USD rebounds toward 0.5800 after last week’s dip, supported by a resilient ANZ business outlook, though the RBNZ’s easing bias keeps upside limited, BBH FX analysts report.

RBNZ esing caps NZD strength

"NZD/USD is up near 0.5800 after testing a low around 0.5750 last Friday. New Zealand’s September ANZ business outlook survey was encouraging, though the RBNZ remains on course for further easing."

"Business confidence was largely unchanged in September with a net 49.6% expecting better business conditions, expected own activity rose 4 points to a five-month high at 43.4% and reported past activity (the best GDP indicator) increased 4 points to 5%. The next RBNZ meeting is on October 8 and markets price-in 30% odds of a jumbo 50bps cut to 2.50% which is a headwind for NZD."