New Zealand dollar steady despite risk aversion

The New Zealand dollar remained relatively steady yesterday, despite investors remaining reluctant to take on any further risk. Weak business confidence data released on Tuesday has lent weight to the argument for further rate cuts, with many analysts now forecasting a 50 basis point cut by the Reserve Bank of New Zealand when they next meet on April 30. The kiwi’s main direction for the shorter term will come from equity markets, particularly with the start of the US corporate earning season.