NZD led the way overnight, on the back of an...>

KIWI: NZD led the way overnight, on the back of an uptick in the latest ANZ

Business Confidence release.

- Headline confidence remains deep in negative territory, while investment

intentions slid further. This should mean that the RBNZ re-deploys its forward

guidance i.e. "the direction of our next OCR move could be up or down," when it

issues it latest monetary policy decision tomorrow, in spite of the stronger

than expected NZ Q2 GDP data. All of those surveyed expect the RBNZ to leave the

OCR unch. At 1.75%.

- As a reminder the last MonPol decision saw the RBNZ note that "risks remain to

our central forecast. The recent moderation in growth could last longer. Low

business confidence can affect employment and investment decisions."

- NZD had blipped lower in early dealing on the back of the widest Aug NZ trade

deficit on record.

- NZD/USD last deals at ~$0.6665, off of data reaction highs of $0.6686. Bulls

look to $0.6700 which capped the pair on Friday, while support is located at the

high from Sep 19 ($0.6623).