The NZD/USD pair is seeing an uptick around 0.6145 following the release of New Zealand’s GDP data on Thursday. New Zealand’s economy grew by 0.2% quarter-on-quarter in Q1, surpassing expectations and showing improvement from the previous quarter. This has led to increased interest in the New Zealand Dollar (NZD) as the country appears to be exiting recession.
Meanwhile, recent US Retail Sales data indicated a potential economic slowdown, fueling expectations of a rate cut by the Federal Reserve. Market participants are now pricing in a 67% chance of a 25 basis points rate cut in September. Boston Fed President Susan Collins also mentioned the possibility of one or two rate cuts later this year, emphasizing the need for patience amid volatile inflation readings.
Investors are eagerly awaiting US economic data releases and a speech by the Fed’s Barkin for further market direction on Thursday. Additionally, Westpac New Zealand’s Consumer Confidence Survey reported a decline in consumer sentiment for the second quarter, adding to the market dynamics.