Breaking: New Zealand GDP smashes expectations at 2.8% vs 1.3% exp QoQ
|New Zealand Gross Domestic Product beat expectations by a mile coming in at 2.8% vs 1.3% expected for the second quarter. For the year, it also beat with a score of 17.4% vs 16.3% expected.
In a soft US dollar environment, the bird has taken off through to 0.7138 and eyes a test of 0.7150 for the sessions ahead.
''Because this data informs us on the economy’s historical starting point, it’s the one dataset that, if strong, will feed the “RBNZ has some catching up to do” vibe that has in turn seen markets price in ~15% odds of a +50bp OCR hike in October,'' analysts at ANZ bank said ahead of the data.
The NZD has rallied as follows:
Why it matters to traders?
The Gross Domestic Product (GDP), released by Statistics New Zealand, highlights the overall economic performance on a quarterly basis. The gauge has a significant influence on the Reserve Bank of New Zealand’s (RBNZ) monetary policy decision, in turn affecting the New Zealand dollar.
A rise in the GDP rate signifies an improvement in the economic conditions, which calls for tighter monetary policy, while a drop suggests deterioration in the activity. An above-forecast GDP reading is seen as NZD bullish.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.