Cratering business sentiment sees Kiwi dollar trapped in bear channel

Traders are fully pricing in another 25 basis point move at the central bank’s November meeting, and a further one by May next year.

Singapore: New Zealand’s dollar is set to take another leg down this week if key manufacturing data add to evidence business sentiment is deteriorating.

The kiwi has tumbled about 7% from its July high as worsening company confidence has added to slowing economic growth and weak job creation as a reason for the central bank to keep on cutting interest rates. The nation’s two-year bond yields have dropped to a succession of record lows.