NZ Treasury: Increased the downside risk to near-term GDP growth forecasts, Kiwi clings to 0.6500

Dhwani Mehta FXStreet

New Zealand’s (NZ) Treasury is out with its monthly economic indicators report, with the key highlights found below.

Weak domestic business confidence and global concerns weigh on GDP growth prospects.

Household confidence remains resilient, supporting consumption outlook.

Fuel, food and rent drive consumer price inflation.

Ongoing trade uncertainty weighed on global business activity in the June quarter.

Global consumer spending holds up, supported by rising wages and solid labor markets.

The Kiwi keeps its range near 2-month lows of 0.6489 amid the US-China trade escalation and growing NZ economic risks.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD: Gains remain capped by 1.1650

EUR/USD remains in recovery-mode following the closing bell in Euroland on Wednesday, hovering around the 1.1650 zone amid renewed downside pressure on the US Dollar and a marginal improvement in the global sentiment.

GBP/USD appears bid around 1.3370

GBP/USD reverses part of its recent multi-day decline, gathering some balance and managing to reach the 1.3400 region, where some initial resistance seems to have turned up. Cable’s uptick comes in response to some loss of momentum in the Greenback despite the geopolitical scenario remaining fragile.

Gold recovers modestly despite intensifying Middle East crisis

Gold keeps its daily gains well in place, although a break above the $5,200 mark per troy ounce still remains elusive on Wednesday. The yellow metal’s rebound comes in response to the persistent flight-to-safety amid intense geopolitical tensions in the Middle East and the bearish performance of the US Dollar.