The New Zealand dollar dropped today after nation’s economic growth disappointed market participants, resulting in speculations about additional interest rate cuts from the Reserve Bank of New Zealand.
New Zealand gross domestic product grew 0.4 percent in the second quarter of this year while economists were counting on at least 0.5 percent growth. Moreover, the pace of economic expansion on year-over-year basis was the slowest since the fourth quarter of 2013. The unfavorable data resulted in talks that the RBNZ has no choice but to ease monetary policy further.
NZD/USD fell from 0.6363 to 0.6120 and NZD/JPY edged down from 76.70 to 76.39 as of 15:59 GMT today.
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