Breaking: NZ GDP beats estimates, kiwi correcting higher
New Zealand’s Gross Domestic Product has been released and was set to rebound 0.5% QoQ in Q1 2021.
A supply shock has been seen threatening economic recovery. However, the data was much better than expected.
GDP outcome
NZ Q1 s/adj expenditure-based GDP +1.4 pct on pvs quarter (Reuters poll +0.5 pct).
NZ annual average prod-based GDP -2.3 pct in first qtr vs year ago (Reuters poll -2.8 pct).
NZ Q1 s/adj production based GDP +2.4 pct on same qtr year ago (Reuters poll +0.9 pct).
NZ Q1 s/adj production based GDP +1.6 pct on pvs quarter (Reuters poll +0.5 pct).
NZD has popped higher by almost 20 pips on the data and plays into the hand so the bulls seeking a correction of the US dollar’s spike post Federal Reserve hawkish surprise.
NZD/USD Price Analysis: Bulls look for correction, but GDP slated
About the Gross Domestic Product
The Gross Domestic Product released by the Statistics New Zealand is a measure of the total value of all goods and services produced by New Zealand.
The GDP is considered as a broad measure of New Zealand economic activity and health. Generally speaking, a high reading is seen as positive (or bullish) for the NZD, while a falling trend is seen as negative (or bearish) for the NZD.