New Zealand Economy Slows Amid Global Interest Rate Hikes

New Zealand's economy is expected to slow down in the second quarter, according to forecasts. The country's GDP growth rate for Q2 is predicted to be just 0.1%, a significant decrease from the 0.8% seen in Q1. This comes as the Reserve Bank of New Zealand (RBNZ) raised interest rates last month, citing inflation at 4.1%. The RBNZ took the Official Cash Rate (OCR) to 2.75%

The NZD/USD pair has been sliding since its late-August high near 0.6000, and is currently trading around 0.5700, its lowest level since early July. The daily Stochastic Relative Strength Index (Stoch RSI), a momentum gauge, is at the bottom of its band, indicating bearish sentiment.

The forecast for Q2 growth may be influenced by global economic trends, as the US Federal Reserve raised interest rates to 3.75%-4.00% on Wednesday and hinted at further increases. This could put pressure on the NZD/USD pair in the coming days.