Skip to content NZDUSD Fundamental Analysis – 20-June-2024
NZD/USD—The New Zealand dollar stabilized around $0.613 after an earlier rise, influenced by the country’s first-quarter GDP data release. This data revealed that New Zealand has exited recession, with a 0.2% growth in the first quarter compared to the previous quarter and a 0.3% increase year-on-year. These figures surpassed expectations and forecasted 0.1% and 0.2% growth, respectively.
Economists Cautious Despite Growth Signs
While this return to growth is a positive sign, the economic outlook remains cautious. Many economists predict the economy will face ongoing challenges in the upcoming quarters.
Interest rates are also a significant focus. Most economists anticipate the first rate cut by the end of this year or early 2025. Investors have already factored in a quarter-point rate cut for November. However, the central bank indicated last month that it does not plan to reduce rates until the second half of 2025.
Mixed Economic Signals and Future Outlook
This mixed economic data suggests that while there are signs of recovery, there are still hurdles ahead. Understanding these dynamics is crucial for investors and policymakers to make informed decisions. The future trajectory will depend on various factors, including global economic conditions and domestic policy responses.
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