NZDUSD Collapsed after Disappointing the Lower NZ GDP Growth18 June, 2015 by Aayush Jindal in Market Analysis
- New Zealand Dollar traded sharply lower against the US Dollar, and trimmed most gains after GDP release.
- New Zealand Gross Domestic Product released by the Statistics New Zealand increased by 0.2% in the first quarter of 2015, compared with the forecast of 0.6%.
- In terms of the yearly change, the New Zealand Gross Domestic Product rose 2.6%.
- Japanese Securities investment figure, released by Ministry of Finance came in at ¥-1,850.6B.
New Zealand GDP
Earlier during the Asian session, the Gross Domestic Product, which is a measure of the total value of all goods and services produced by New Zealand was released by the Statistics New Zealand. The forecast was lined up for an increase of 0.6% in the first quarter of 2015, compared with the preceding month. However, the outcome was a lot lower, as the New Zealand GDP grew only 0.2%.
When we consider the yearly change, then the New Zealand Gross Domestic Product grew by 2.6% in the first quarter of 2015, compared with the same month a year ago. There was a huge decline noted in primary industries by 2.9%, which was the largest fall since September 2010.
The national accounts manager Gary Dunnet, stated that “Oil and gas were big factors in the lower GDP growth this quarter. There was less extraction and exploration, as international prices fell”. Overall, the GDP report was a disappointment, and the impact was visible on the NZDUSD pair as it fell sharply lower.
NZDUSD – Technical Analysis
Yesterday, after the FOMC there was an upside move noted in the NZDUSD pair, taking it above 0.7000. However, the NZ GDP report once again ignited a bear rally. There was a bearish trend line that acted as a hurdle for buyers and pushed the pair lower.
The NZDUSD pair is currently trading around the last swing low of 0.6880, and looks set for more declines. Any correction from here might find sellers around the 38.2%-50% Fib retracement level of the last drop from the 0.7010 high to 0.6878 low.
Today in the US, the Consumer Price Index will be released by the US Bureau of Labor Statistics. The forecast is +0.2% in May 2015, compared to the preceding month. Let us see whether the expectation as fulfilled or not moving ahead.