According to ChainCatcher, UBS economist Nic Guesnon said that the Reserve Bank of New Zealand is expected to keep the official cash rate unchanged at 5.50% at next week's policy meeting, but this looks like a very close decision to a rate cut.

He said the RBNZ made a significant shift in a dovish direction in its July policy statement, but traders and economists still don't know whether they are considering a rate cut at that meeting.

He added that markets were pricing in a 70 per cent chance of a 25 basis point rate cut in August, but an initial survey of economists showed a broad preference for the official cash rate to remain unchanged.