New Zealand GDP: When is it and how will it impact the NZD/USD?
|New Zealand GDP Overview
New Zealand's GDP figures for the final quarter of 2017 will be dropping imminently at 21:45 GMT. Kiwi bulls will be looking for an upbeat tone to the overall numbers, as the Kiwi's economy has been lagging behind global growth trends with muted construction activity and slumping business confidence. New Zealand's population growth is heavily reliant upon migration to top off their headcounts each year, and immigration numbers have also been dropping lately which could take the top off of economic activity in the long run. The Reserve Bank of New Zealand (RBNZ) is mired in a wait-and-see holding pattern over interest rates with the economy stubbornly stuck in neutral.
The New Zealand GDP is expected to come in at 0.7% (prev. 0.6%) for the final quarter of 2017, and 3.1% for the entire year (prev. 2.7%). The forecasts may be on the lofty side with uneven results in most of the macro data for the country, but an upside surprise will be a boon for traders looking to prop up the NZD.
How will the GDP numbers impact the NZD/USD?
The Kiwi has been chugging away trying to lift away from the 200-day SMA, but upward mobility remains limited with political tensions around the globe kicking down any serious attempts to build into a risk appetite rally. As FXStreet's own Flavio Tosti notes, "the incoming GDP data might unlock the situation. If the resistance is broken there is nothing much in the way and bulls should be able to bring the market to the 0.7400 psychological level. On the opposite side, if bears win the market will most likely push through the 0.7320 intraday support and reach the 0.7280 level, the 38.2% Fibonacci retracement, close to the 100-period SMA. If the bears have enough strength they can hope to get to the 0.7240 level, the 23.6% Fibonacci retracement."
Key Notes:
A difference of opinion from Westpac
About the New Zealand GDP
The Gross Domestic Product released by the Statistics New Zealand is a measure of the total value of all goods and services produced by New Zealand. The GDP is considered as a broad measure of New Zealand economic activity and health. Generally speaking, a high reading is seen as positive (or bullish) for the NZD, while a falling trend is seen as negative (or bearish) for the NZD.
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