NZD/USD Surges After NZ Economy Beats Growth Forecasts

The New Zealand Dollar (NZD) rose on Thursday after data showed that its economy expanded more than expected in the second quarter.

Gross Domestic Product (GDP) grew by 0.2% QoQ, beating market forecasts for a 0.1% increase, but slowing sharply from the 0.9% expansion recorded in the first quarter.

The NZD/USD pair rebounded to around 0.5730, up 0.35% on the day, as the stronger-than-expected GDP figures provided some relief for the currency.

However, the gains were limited by the Federal Reserve's (Fed) decision to raise its benchmark interest rate by 25 basis points (bps) to 3.75%-4%, and expectations of further monetary tightening in the US.