RBNZ to meet next week: 64.3% chance of a cut
It was the NZD business confidence data point for the NZD this week that has heightened expectations of an RBNZ rate cut next week. The uptick in unemployment from 4.1% expected and 3.9% prior to 4.2% saw some weakness enter into the NZD. The weak reading saw an eventual move down towards 0.6350. The RBNZ meet next week and the probability of a rate cut is now at 64.3% (it was 54% prior to the unemployment data) and 72.6% for next month's meeting. This will weigh on the NZD into next week's meeting.