NZD/USD bulls look to 0.7150 on strong New Zealand Q2 GDP


  • NZD/USD jumps over 20 pips following the better-than-forecast NZ GDP.
  • New Zealand Q2 GDP came in 2.8% QoQ, 17.4% YoY.
  • Risk-on mood favors Antipodeans even as AUKUS deal, covid woes and Fed fears challenges optimists.
  • Aussie jobs report, US Retail Sales will be the key data to watch, risk catalysts are important too.

NZD/USD extends the previous day’s upbeat momentum beyond 0.7100, up 0.30% around 0.7130 after New Zealand’s (NZ) second-quarter (Q2) GDP was released during Thursday’s Asian session. The kiwi pair cheered upbeat sentiment and US dollar pullback the previous day but the bulls were probed by geopolitical headlines concerning China during early Asia.

NZ Q2 GDP rose past 1.3% QoQ forecast to 2.8% while the previous readings were revised down to 1.4% versus 1.6%. Further, the YoY figures were brighter, as expected, while rising to 17.4% from upwardly revised 2.9% previous readouts and 16.3% market consensus.

Read: Breaking: New Zealand GDP smashes expectations at 2.8% vs 1.3% exp QoQ

Earlier in the week, the New Zealand Institute of Economic Research (NZIER) revised down near-term GDP forecast but keeps saying, “Annual average growth in GDP is forecast to remain at 4.5 percent for the year to March 2023.”

It’s worth mentioning that the firmer QoQ figures reject the fears of a downbeat GDP and joins the previously released strong inflation and jobs report to inflate the odds of the Reserve Bank of New Zealand (RBNZ) rate hike during this year. Hence, NZD/USD bulls have scope to rise further and refresh the monthly top.

However, the fears concerning the next week’s US Federal Open Market Committee (FOMC) meeting and the recent US-UK-Australia security pact to tease China seem to challenge the bulls.

While the softer US Consumer Price Index (CPI) joined the line of the downbeat US jobs report to fade the Fed tapering woes, China’s US embassy recently reacted to the Western friends’ alliance saying, “The three should shake off their cold war mentality and ideological prejudice.”

It’s worth noting that the market sentiment remained positive the previous day amid receding odds of the Fed tapering and vaccine optimism even as US-China tussles, over Taiwan, joined the virus woes to tame the optimism.

That said, S&P 500 Futures print mild gains following a positive closing by the Wall Street benchmarks, which in turn adds to the NZD/USD strength.

Looking forward, geopolitical factors and virus updates may entertain NZD/USD traders ahead of Australia’s August employment report and US Retail Sales. Overall, the bulls are likely to keep the reins but it all depends upon the next week’s Fed meeting.

Technical analysis

Although sustained trading beyond 100-DMA, near 0.7075, keeps NZD/USD buyers hopeful, they need a daily closing beyond 200-DMA level of 0.7120 to dominate.

Additional important levels

Overview
Today last price 0.7126
Today Daily Change 0.0027
Today Daily Change % 0.38%
Today daily open 0.7099
 
Trends
Daily SMA20 0.7024
Daily SMA50 0.7003
Daily SMA100 0.7079
Daily SMA200 0.7117
 
Levels
Previous Daily High 0.7151
Previous Daily Low 0.7081
Previous Weekly High 0.7162
Previous Weekly Low 0.7076
Previous Monthly High 0.7089
Previous Monthly Low 0.6805
Daily Fibonacci 38.2% 0.7108
Daily Fibonacci 61.8% 0.7125
Daily Pivot Point S1 0.7069
Daily Pivot Point S2 0.704
Daily Pivot Point S3 0.6999
Daily Pivot Point R1 0.714
Daily Pivot Point R2 0.7181
Daily Pivot Point R3 0.721

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 

EUR/USD News

GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 

GBP/USD News

XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more

Forex MAJORS

Cryptocurrencies

Signatures