News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/z8z6BNudn5
  • #PELOSI SAYS WE ARE GOING TO PASS THE INFRASTRUCTURE BILL THIS WEEK PELOSI SAYS SHE WILL NEVER BRING TO THE HOUSE FLOOR A BILL THAT DOESN'T HAVE THE VOTES TO PASS $USD $SPX $XAUUSD
  • Short-term uncertainties to keep the pressure on equity markets. Get your weekly equities forecast from @JMcQueenFX here: https://t.co/JLMDPZKvN8 https://t.co/YbdJnwoqj1
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/hqW38VawJl
  • - Unreal atmosphere - Shame about the result, but no complaints - Usyk masterclass - Heavyweight division blown wide open https://t.co/BKCLJTDk9h
  • The USD could still rally a bit from here, but has resistance not far ahead that it will need to overcome if it is to extend to a larger degree. Get your weekly $USD technical forecast from @PaulRobinsonFX here: https://t.co/n0CVWWOJDe https://t.co/0uLjsQ2gwM
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/D8DXSAdpqC https://t.co/nfiFAlyYXv
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0unrdT https://t.co/mIsVJ4zTbB
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/hymrumanUY
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfs2Iz https://t.co/6dAqxsVfxJ
New Zealand Dollar Slightly Hurt As In-Line GDP Bores RBNZ Hawks

New Zealand Dollar Slightly Hurt As In-Line GDP Bores RBNZ Hawks

Daniel Dubrovsky, Strategist

Talking Points:

  • Second quarter y/y and q/q New Zealand GDP data released in-line with expectations
  • The New Zealand Dollar took a hit, albeit relatively minimally in response to the data
  • Considering the RBNZ’s monetary policy stance, the data probably disappointed hawks

Just started trading NZD/USD? See our beginner guides to help build your strategy!

The New Zealand Dollar took a relatively small hit against its major counterparts following the second quarter GDP release. New Zealand’s economy expanded at 2.5 percent y/y as expected and at the same pace as in Q1. Quarter-on-quarter, growth was also in-line with expectations of 0.8 percent.

For a developed nation, 2.5 percent growth could be argued for as a healthy pace. In addition, the country’s GDP certainly stands out as being one of the fastest expanding of the major nations. Yet, the Kiwi seemed to be unimpressed. Taking a look at interest rate expectations and the RBNZ’s policy statement can help unravel this response.

Starting with the latter, in its most recent monetary policy statement, the Reserve Bank of New Zealand forecasted that GDP is expected to improve going forward. In addition, the central bank said that numerous uncertainties remain and that policy may need to adjust accordingly.

Meanwhile, overnight index swaps are pricing in that the RBNZ will increase its benchmark lending rate at least once over the next 12 months. Taking these factors into account, an in-line GDP reading that is counter to the trend the central bank expects might explain why the New Zealand Dollar didn’t take the data kindheartedly.

Nevertheless, we might find out just what the Reserve Bank of New Zealand thinks of this at its next interest rate announcement on September 27, just a week away.

New Zealand Dollar Slightly Hurt As In-Line GDP Bores RBNZ Hawks

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES