forex NZD/USD:New Zealand’s Growth Sped Up in Q3

[Anzo Lim 0]

https://jump.wikifx.com/83348CF26389B46D

New Zealand’s economic growth has picked up speed in the third quarter, suggesting an end of the slowdown and the Reserve Bank of New Zealand(RBNZ) may not need to further cut interest rates. GDP increased 2.3% year on year in Q3, higher than the 2.1% growth from last quarter and in line with economist’ expectation. As improving business confidence and rising housing price add to the optimism that the economy has reached, or will soon reach a turning point, and the bets for further rate-cut have been falling.

 

The central bank slashed the official cash interest rate to a record low of 1% this year, and the government also announced a NZ$12 billion(US$8 billion) infrastructure investment plan last week, which can further fuel into economic activities in the election year 2020.

 

A moderately positive GDP in combined with recovering business confidence recently are somewhat reassuring for RBNZ, leading to a more balanced assessment of the central bank on its official cash rate risks.

 

NZD/USD pivot points 0.6590--0.6600

 

S1   0.6582                  R1  0.6619

 

S2   0.6558                  R2  0.6632

Edited December 20, 2019 by Anzo Lim