New Zealand Gross Domestic Product figures disappointed, revealing the economy grew 0.2% in the third quarter. Economists had predicted a 0.4% expansion ahead of the release. Looking at the report’s details, consumption growth accelerated to add 0.7% after gaining 0.4% in the second quarter, but the pace of contraction in business investment accelerated to -0.9% versus -0.4% in the three months to June. The external sector also yielded lackluster results as exports failed to grow for the first time this year. The New Zealand Dollar declined to test a low of 0.6973 against its US counterpart after the data crossed the wires, but any significant follow-through seems unlikely considering the market’s yield expectations look virtually unchanged in the aftermath of the announcement. Indeed, a Credit Suisse gauge of the priced-in interest rate outlook has called for borrowing costs to rise 203 basis points over the next 12 months since last Friday.
For real time news and analysis, please visit http://forexstream.dailyfx.com
To receive future articles by email, please contact Ilya at ispivak@dailyfx.com
DailyFX provides forex news on the economic reports and political events that influence the currency market.
Learn currency trading with a free practice account and charts from FXCM.
