Kiwi Falls as New Zealand Economy Slows
June 26, 2018 12:43 amVideo
Latest News
- The FOMC will not lower rates in 2024 April 18, 2024
- Powell made a bold point, and Bailey did not report anything important April 18, 2024
- Will the euro take a risk? April 18, 2024
- Trading Signals for GOLD (XAU/USD) for April 17-19, 2024: sell below $2,400 (21 SMA – double top) April 17, 2024
- Technical Analysis – GBPCAD hits a wall but bulls not ready to give up April 17, 2024
- Trading Signals for Ethereum (ETH/USD) for April 17-19, 2024: sell below $3,125 (21 SMA – 2/8 Murray) April 17, 2024
- Analysis for the EUR/USD pair on April 17th. Jerome Powell didn’t help the dollar much April 17, 2024
- Analysis for GBP/USD pair on April 17th. British inflation overtakes American inflation April 17, 2024
- USD/JPY: Simple Trading tips for novice traders on April 17th (US session) April 17, 2024
- GBP/USD: Simple trading tips for novice traders on April 17th (US session) April 17, 2024
- EUR/USD: Simple trading tips for novice traders on April 17th (US session) April 17, 2024
- GBP/USD: trading plan for the US session on April 17th (analysis of morning deals) April 17, 2024
- Technical Analysis – EURUSD takes a breather after sharp tumble April 17, 2024
- Market continues to price in a plethora of rate cuts for 2024 – Special Report April 17, 2024
- EUR/USD: trading plan for the US session on April 17th (analysis of morning deals) April 17, 2024
- Technical Analysis – EURGBP maintains bearish bias amid pennant formation April 17, 2024
- EUR/USD. April 17th. Jerome Powell supports the dollar April 17, 2024
- GBP/USD. April 17th. Inflation in Britain is falling, but not as much as the market wants April 17, 2024
- Tesla Q1 Earnings: Poor deliveries point to disappointing results – Stock Markets April 17, 2024
- Video market update for April 17, 2024 April 17, 2024
The NZD/USD pair dropped to the lowest level this year after New Zealand released weak economic data. Yesterday, the country reported a widening trade imbalance after imports soared while exports declined. In the last quarter, the seasonally adjusted current account deficit was $3 billion which was the largest account since 2008. This number was 2.8% of the GDP compared with the 7.8% peak in 2008. Imports increased as people and companies increased their purchases of petroleum and machinery. In the quarter, exports fell by 5.9% from the Q4. This was also contributed by the lower dairy prices and fall in volumes of meat exports.
Earlier today, the country announced the Q1 economic growth that met expectations. However, they were lower than the previously-reported data. In the quarter, the economy expanded by 0.5%, which was lower than Q4’s 0.6%. On an annual basis, the economy grew by 2.7%, which was lower than the 2.9% recorded in the fourth quarter.
At the industry level, 13 out of the 16 industries tracked showed some progress. Agriculture was up by 0.4% after a 2.8% decline in Q4 which was contributed to a rebound in milk prices. Construction fell by 1.0% but was still higher by 1.4% in the year. Consumer spending, – a major contributor to GDP – was flat in the quarter. The slower GDP growth was also attributed to the decline in exports and increase in imports.
The pair has reached 0.6828 which is the lowest level this year. The weak economic data reduce the chances for the RBNZ to hike interest rates any time soon. At the same time, the Fed is committed to increase rates two more times this year. This means that the pair could continue moving lower.
The pair’s RSI is currently at the 30 level and the pair is trading below the 21 and 42-moving averages. In the immediate short term, the pair could see a false reversal where it moves higher. In this, traders should watch out for the 0.6890 level after which the downward momentum can continue.
The post Kiwi Falls as New Zealand Economy Slows appeared first on Forex.Info.
Related Posts: