NZD/USD Outlook: Boost in Confidence Sparks Kiwi Breakout Potential

New Zealand Business Confidence Reaches Decade High

According to the latest quarterly survey by NZIER, business sentiment in New Zealand soared to its strongest level in more than ten years during the fourth quarter. Both hiring and investment plans saw significant increases compared to the previous quarter, with 22% more companies expecting to expand their workforce in the coming months. After a prolonged period of caution, businesses are also showing renewed interest in investing.

Despite this growing optimism, actual business activity remains muted. Although domestic interest rates have dropped considerably from recent highs, the overall economic rebound is still at an early stage. While improved confidence could pave the way for further growth, a decisive upturn has yet to materialize.