NZ GDP Growth Slows, But Annual Rate Beats Expectations
The Reserve Bank of New Zealand (RBNZ) reported that the country's economy grew at an annual rate of 2.3% in the second quarter, beating expectations. However, the quarterly growth rate was lower than anticipated, coming in at 0.1%, down from 0.8% in the first three months of the year.
The forecast for a slower quarterly growth rate is due to the quarters being compared against weaker periods. The RBNZ's move to raise interest rates to 2.75% on September 2, with inflation at 4.1%, has been validated by this release.
The New Zealand Dollar (NZD/USD) has been impacted by these economic releases, trading just above 0.5700, its lowest since early July. The pair sits below both its 50-day and 200-day Exponential Moving Averages (EMA), which have converged near 0.5850.
The daily Stochastic Relative Strength Index (Stoch RSI) is at the bottom of its band, indicating a bearish momentum for the NZD/USD pair.