New Zealand Q1 GDP drops to -0.2% QoQ vs. 0.6% expected, NZD/USD retreats towards 0.6250
|New Zealand’s first quarter (Q1) 2022 Gross Domestic Product (GDP) dropped to -0.2% on QoQ compared to 0.6% market forecasts and 3.0% in the previous reading.
Further details suggest the YoY figures easing to 1.2% versus 3.3% market consensus and 3.1% prior.
Following the NZ GDP data release, NZD/USD refreshed its intraday low to 0.6265 by flashing a 15-pip downside. That said, the pair rallied the most in two weeks the previous day after the Fed’s 75 bp rate hike.
About New Zealand GDP
The Gross Domestic Product (GDP), released by Statistics New Zealand, highlights the overall economic performance on a quarterly basis. The gauge has a significant influence on the Reserve Bank of New Zealand’s (RBNZ) monetary policy decision, in turn affecting the New Zealand dollar. A rise in the GDP rate signifies an improvement in the economic conditions, which calls for tighter monetary policy, while a drop suggests deterioration in the activity. An above-forecast GDP reading is seen as NZD bullish.
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