LIVE FOREX CHART >>

 


Author Topic: New Zealand GDP predicted to expand in slower pace while kiwi stalls near $0.70 – Forex News Preview  (Read 140 times)

FXshooting

  • Administrator
  • Hero Member
  • *****
  • Posts: 1785
    • View Profile
New Zealand GDP predicted to expand in slower pace while kiwi stalls near $0.70 – Forex News Preview



New Zealand will publish GDP figures on Thursday (Wednesday 2245 GMT) for the first quarter. Investors will be cautious for any clues as to whether the Reserve Bank of New Zealand (RBNZ) will raise or decrease interest rates. Economic growth is expected to have slowed down further in the first quarter of 2018.



Analysts are estimating New Zealand’s economy grew by just 0.5% in the three months to the end of March, easing slightly from the previous two quarters of 0.6%. On an annual basis, GDP is expected to have expanded by 2.7% versus 2.9% in the preceding period. The data are unlikely to change the RBNZ’s view and a more disappointing release would endorse the scenario for another cut in rates rather than an increase for the near future.

Turning to monetary policy, the central bank kept its official cash rate unchanged at a record low of 1.75% on May 10, as widely expected. The last change in key rate was in November 2016. Policymakers highlighted that inflation remains below the 2% mid-point of the target due to recent low food and import price inflation, as well as subdued wage pressures. Meanwhile, inflation advanced by 1.1% y/y in the first three months of this year versus a 1.6% y/y increase in the previous quarter, matching market expectations. This figure was the slowest since the third quarter of 2016. It is worth mentioning that the unemployment rate ticked lower to 4.4% in Q1 from 4.5% before. This was the fifth consecutive quarter the unemployment rate has fallen and was the lowest number since the last quarter of 2008.

On the political front, US President Donald Trump’s trade war could have a negative effect on New Zealand and its currency. Trump has put a hefty tariff on Chinese imports and China has retaliated by imposing tariffs of their own. The country is already seeing impacts from the steel and aluminum exports, where tariffs were brought in earlier in 2018. The New Zealand dollar is moving sharply lower and could fall even more in case of worse-than-expected data.




From the technical point of view, kiwi/dollar has slipped more than 2% since last week, recording a fresh three-week low of 0.6883. The strong sell-off rally started after the pullback on the 0.7050 resistance level, while the moving averages are following the bearish structure in the short-term.

If GDP numbers surpass the consensus then the expectation is a run until the 20-SMA near 0.6940 at the time of writing. A break above the aforementioned obstacle could open the door towards the next barrier of 0.6955 taken from the significant top on June 18.

A worse-than-expected figure could continue the downward pressure for the pair and would retest the latest low of 0.6881. Further losses could drive kiwi/dollar until the 0.6870 support before being able to re-challenge the 0.6850 region. In case of steeper decreases, the next support to have in mind is the 0.6820 barrier, taken from December 8 low.


Ref. https://clicks.pipaffiliates.com/c?c=332923&l=en&p=0


https://www.fxshooting.com
« Last Edit: July 01, 2018, 06:44:35 am by FXshooting »

Share on Facebook Share on Twitter


 







Pay For Premium Forex Signals FXSHOOTING

Payment Premium Signals

 



NEWS & ANALYSIS VIDEO



 










InstaForex



   


Risk Disclosure: Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Trading or investing in cryptocurrencies carries with it potential risks. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Cryptocurrencies are not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite. Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures), Forex and cryptocurrencies prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data. Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.