• New Zealand economy seen growing at a slower pace in Q2.
  • NZD/USD trading near multi-year lows and long-term bearish.

New Zealand will release this Thursday it´s Gross Domestic Product for the second quarter of the year, a couple of hours after the Fed’s monetary policy decision. The US Central Bank will likely rock the boat ahead of the event and seems likely that sentiment toward the greenback post-Powell would overshadow the effect of New Zealand Q2 GDP on NZD/USD. Furthermore, Australia will release its August employment figures later in the day, another factor that would weigh on the pair’s direction.

Growth in New Zealand is foreseen up by 0.4%, weaker than the previous quarter 0.6% advance. When compared to a year earlier, growth is expected at 2.0% from 2.5% previously.

Back In August, when the RBNZ had its meeting, Governor Adrian Orr & Co. cut rates by 50 basis points. Later that month in a press conference, Orr said “we’re pleased with where we are,” as the cut allowed policymakers to get ahead of any economic slowdown. That said, GDP figures at the levels forecasted, won’t be enough to twist Orr’s hand. The central bank will meet next week, on September 25, and is largely anticipated to keep rates on hold at 1.0%.

There’s a limited chance that the US Federal Reserve will do against the market’s forecast, and given the ongoing global economic slowdown and recent tensions in the Middle East, speculative interest will need little to buy the greenback.

NZD/USD Technical Outlook

The NZD/USD pair is trading above 0.6300 ahead of the events, although not far from a multi-year low set earlier this month at 0.6268. The weekly chart shows that the 20 DMA heads south at around 0.6365 providing a relevant resistance ahead of the above-mentioned events. The weekly low at 0.6320 is the immediate support, ahead of the mentioned 0.6268. The Momentum indicator in the mentioned chart heads lower within neutral levels and the RSI currently a around 36, skewing the risk toward the downside without confirming it. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex Analysis

Editors’ Picks

EUR/USD pressured around 1.13 after jump in US jobs

EUR/USD is trading around 1.13, down after US Non-Farm Payrolls shocked with a leap of 2.5 million jobs in May, contrary to all projections. The greenback is gaining while stocks are falling, a correlation breakdown. ECB stimulus previously supported the euro.


GBP/USD retreats from highs

GBP/USD is trading below 1.27, off the highs. The pound is struggling after Chief EU Negotiator Barnier reported little progress in Brexit talks. Robust US jobs support the dollar.


XAU/USD retreats further to $1670, lowest in five weeks

Gold prices are falling sharply on Friday on the back of the US employment report that boosted equity markets and sent US yields to the upside. XAU/USD is losing more than $40 on Friday and recently bottomed at $1670/oz, the lowest intraday level since May 1.

Gold News

Institutional demand exceeds Bitcoins supply

Greyscale floods the market with fresh money to satisfy the demand of its clients. Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences. Market remains at risk on the verge of new bullish territory.

Read more

WTI rallies above $39 as focus shifts to OPEC+ meeting

Crude oil prices built on Thursday's modest gains and rose sharply on Friday boosted by the upbeat market mood optimism surrounding Saturday's OPEC+ meeting. 

Oil News

Forex Majors