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NZD/USD pays a little heed to New Zealand GDP, nears 11-year low under 0.5750

  • NZD/USD stays under pressure as New Zealand GDP meets the expectations.
  • The broad risk aversion continues to find solace in the US dollar.
  • Today’s Aussie data, RBA will be the key as being the data/events from the largest customer.

Given the New Zealand (NZ) Q4 GDP data matching wide expectations, NZD/USD remains on the back foot around 0.5730 amid the early Thursday morning in Asia.

The NZ fourth quarter (Q4) Gross Domestic Product (GDP) met 0.5% QoQ and 1.8% YoY expectations versus an upward revised 0.8% and 2.3% respective priors.

Read more: Breaking: New Zealand Q4 GDP: 0.5% QoQ (expected 0.5%, prior 0.7%)

The kiwi pair continues to bear the burden of macro risk aversion as a rush fight against the coronavirus (COVID-19) keeps the traders’ fraternity diverted to the US dollar. The reason could be traced from the worries of an upcoming recession as well as how the policymakers will be able to fund such a mammoth amount of stimulus.

The latest data suggest there are more than 2,14,000 cases worldwide with the numbers in Italy and the UK marking a spike in the last 24 hours.

While portraying the risk-off, Wall Street plunges into the sea of red whereas the US 10-year treasury yields remain positive beyond 1.0%.

Moving on, the New Zealand economic calendar is silent, for now, which in turn will push the Kiwi traders towards the Aussie jobs report for February and the key RBA meeting. While Aussie numbers are less likely to offer many moves, except for the intermediate push, RBA can keep the stimulus ready with bond purchases being on the table.

Technical Analysis

Unless bouncing back beyond 0.6000 round-figure April 2009 bottom close to 0.5500 is likely appearing on the charts.

 

Breaking: New Zealand Q4 GDP: 0.5% QoQ (expected 0.5%, prior 0.7%)

NZ ANNUAL AVERAGE PROD-BASED GDP +2.3 PCT IN FOURTH QTR VS YEAR AGO (REUTERS POLL +2.2 PCT). NZ Q4 S/ADJ EXPENDITURE-BASED GDP +0.2 PCT ON PVS QUARTE
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