According to the ANZ Business Confidence indicator, business optimism is the strongest since March 1994, nearly 20 years. The headline figure jumped from 64.1 to 70.8 points, a super strong figure.
Together with less tensions around the Ukraine and a type of relief rally in global markets, NZD/USD climbed and topped 84 cents, the highest level since mid January.
According to the ANZ bank, the New Zealand economy is expected to surge in 2014 if the growth component is realized.
The headwinds for the economy are a stronger kiwi dollar and rate hikes. A rate hike in March certainly seems imminent and 90% of companies are seeing it. Nevertheless, companies are aware of all this and still expect to grow: 59% see growth, the highest since June 1994.
Net hiring is also at extremes: 32% of companies expect to hire in the next months, and this is the strongest since December 1992. Also profitability is expected to in the highest levels since April 1994.
NZD/USD was already moving higher towards the publication, and this superb figure sent it to the highest level since January 14th, when it reached 0.8432. The round 0.85 figure looms above. Support appears at 0.8335. For more levels, events and analysis, see the NZDUSD forecast.
It is important to note that building consents in New Zealand have dropped by 8.3% in January, worse than 3.5% expected, but as this is a volatile indicator, it was mostly ignored by markets.
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