Breaking: NZD 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.
GDP outcome
- NZ Q1 S/ADJ EXPENDITURE-BASED GDP +1.4 PCT ON PVS QUARTER (REUTERS POLL +0.5 PCT)
- 16-Jun-2021 16:45:01 - NZ ANNUAL AVERAGE PROD-BASED GDP -2.3 PCT IN FIRST QTR VS YEAR AGO (REUTERS POLL -2.8 PCT)
- 16-Jun-2021 16:45:01 - NZ Q1 S/ADJ PRODUCTION BASED GDP +2.4 PCT ON SAME QTR YEAR AGO (REUTERS POLL +0.9 PCT)
- 16-Jun-2021 16:45:01 - 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 port 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.