NZD/USD: Trading the New Zealand GDP Report
The New Zealand dollar may face increased selling pressures over the next 24 hours of trading as economists forecast the growth rate to contract 0.2% in the second-quarter, and fears of a slower recovery may lead businesses to scale back on production and employment in throughout the second-half of the year as global trade conditions remain weak.
Trading the News: New Zealand Gross Domestic Product
Time of release: 09/21/2009 22:45 GMT, 18:45 EST
Primary Pair Impact : NZDUSD
Expected: - 0.2%
1Q 2009 New Zealand Gross Domestic Product
New Zealand’s GDP contracted 1.0% in the first-quarter amid expectations for a 0.7% decline, with the annualized rate tumbling 2.7% from the previous year, and fears of a protracted downturn may lead the Reserve Bank of New Zealand to take additional steps to stimulate the ailing economy as the outlook for growth and inflation remains weak. RBNZ Governor Alan Bollard projects economic activity to remain subdued until the fourth-quarter of 2009, and went onto say borrowing costs are likely to stay low going into the following year in an effort to jump-start the ailing economy. At the same time, Prime Minister John Key said that the rapid appreciation in the exchange rate “risks derailing” the economic recovery as global trade conditions remain weak, and the central bank may continue to ease policy further in the coming months to steer the nation out of recession.
4Q 2008 New Zealand Gross Domestic Product