The New Zealand Dollar has traded sideways against the Greenback, moving within a tight range 30 pips from 0.6800 to 0.6830. Local data released did not provide much support to the pair with the ANZ business outlook survey showing more weakness in business confidence, down to a 10-year low. The outlook for July showed 45% of businesses were pessimistic about the general outlook for the economy with confidence sliding before the general election in 2017. Economists believe a shift down in confidence can be also due to a labour- led government and uncertainty about the policy direction. In other news, NZ Building permits fell by 7.6% in June, after a large rise of 6.9% in May.
The focus domestically today is the labour market report, where we expect the unemployment rate to remain unchanged at 4.4%. Of possibly more interest is the wage growth data, where we’re expecting a relatively large 0.7% increase in the LCI, in part due to the April 1st increase in the minimum wage.
NZD/USD is holding on to 68c at the moment, with key support at 0.6720 and resistance up at 0.6860.