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Firmer, Business Conditions Improve

NZD

NZD/USD prints at $0.5965/70, the pair is ~0.2% firmer this morning.

  • Kiwi extended early gains after Chinese Mfg PMI was stronger than forecast, resistance was seen ahead of $0.5980 and the pair ticked away from session highs.
  • AUD/NZD is firmer, the pair sits a touch below the $1.09 handle however narrow ranges continue to persist.
  • ANZ business confidence rose to -3.7 in August from -13.1. Business activity outlook rose to +11.2 from +0.8, the third straight positive, and suggests GDP growth recovered further in Q3. These were the highest readings in over two years and 19 months consecutively.
  • Cross asset wise; BBDXY is down ~0.1% and US Tsy Yields are little changed. E-minis are up ~0.1%.
  • A thin docket for the remainder of the Asian session leaves wider swings in risk sentiment as the main driver in NZD.

Fig 1: AUD/NZD SPOT vs Relative Business Conditions

Source: MNI/Bloomberg

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