The NZD continued to step lower on Friday, weakening against the USD in line with other major currencies. NZD/USD closed 0.2% softer just above 0.8550. The only local data on Friday failed to provoke a discernible reaction in currency markets, despite headline weakness in the ANZ business confidence release. The market continues to mull the RBNZ’s words from Thursday, with chatter about possible intervention the main discussion point. We remain on the sceptical side of the debate, given that action to weaken the NZD would be inflationary, and run contrary to the current stance of monetary policy.
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