NZ Q2 GDP data smashes expectations and boosts NZDUSD

In today's first instalment of an Antipodean data double header, New Zealand Q2 GDP smashed expectations, expanding by 2.8% after a 1.4% rise in the March quarter.

September 15, 2021 10:24 PM
Growth was driven by a 2.8% q/q rise in the services industry, which makes up about two-thirds of the NZ economy, aided by primary industries including agricultural that increased by +5% q/q and goods production +1.3%q/q. 


The data confirms the booming state of the economy before the current Level 4 lockdown and that the contraction in Q3 will be shallow. It also reinforces the belief that the RBNZ will raise interest rates from its emergency setting of 0.25% next month. 

The only question is whether it will be a 25bps lift in interest rates or a 50bp hike. While a 50bp hike appears warranted, reflecting the uncertainty provided by the current Covid outbreak, the interest rate market has settled post the GDP data to be pricing in 35bp of rate hikes for the October 6th meeting.

The NZDUSD (which holds one of the largest positions in G10 FX currently) rallied 20 pips after the data from .7120 to .7140 before settling back at .7130 at the time of writing. 

There remains a cluster of resistance at .7140 up to .7170, including the 200-day moving average and trend channel resistance that the NZDUSD needs to clear to indicate the current correction is complete and the NZDUSD is ready to take another leg higher towards .7300c. 

NZDUSD Daily Chart

Source Tradingview. The figures stated areas of September 16th, 2021. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation

Related tags: Forex NZD

Latest market news

View more
Nasdaq 100 Forecast: QQQ rises as chip stocks rebound, Netflix earnings in focus
Today 01:06 PM
USD/JPY analysis: Focus turns to FX intervention as traders eye 155 handle
Today 11:00 AM
EUR/USD, Oil Forecast: Two trades to watch
Today 08:33 AM
China A50, Hang Seng, USD/CNH: Economic revival, state intervention creates ample trade opportunities
Today 07:04 AM
US dollar ponders correction as bond prices approach support
Today 06:20 AM
AUD/USD, ASX 200: Jobs report has little RBA implications, back to watching China
Today 02:40 AM

Open an account today

Experience award-winning platforms with fast and secure execution.
Open account

Web Trader platform

Our sophisticated web-based platform is packed with features.
Learn more
Economic Calendar

Latest Forex articles

japan_09
Japanese Yen Forecast: USD/JPY Rally Nears 155 – Is the BOJ “The Boy Who Cried Wolf?”
By:
Matt Weller CFA, CMT
Yesterday 02:40 PM
    Research
    EUR/USD, DAX may be down – but they’re not fully out
    By:
    Matt Simpson
    Yesterday 04:47 AM
      Market trader analysing data
      EUR/USD analysis: Focus turns to Powell as geopolitical uncertainty lingers
      By:
      Fawad Razaqzada
      April 16, 2024 12:00 PM
        canada_04
        USD/CAD analysis: Canadian CPI in focus for BOC clues
        By:
        Matt Simpson
        April 16, 2024 04:24 AM

          This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

          StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

          In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

          StoneX Financial Pte. Ltd. is not under any obligation to update this report.

          Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.