NZD June

NZD 17th-21st June Fundamental Report

News and economic event analysis disclaimer: This fundamental report is not advice or a recommendation to trade or invest, it is educational and general information only. Don’t blindly buy and sell the markets/products discussed in this article, do your own research and be aware of the risks and rewards.

NZD Main Focus This Week: 

  • Economic Data Type: None
  • Server Time: None
  • Quick view: None

Quick View: Dovish

  • The RBNZ reduced interest rates to 1.50% at a meeting of May 2019 in the dovish tone.
  • The next RBNZ meeting is June 26, 2019.
  • The economic focus of RBNZ is GDP and CPI.
  • Member meetings have agreed to reduce interest rates seen in line with central bank projections due to weakness in domestic spending, economic growth and problems in the employment sector, which require stimulus from central bank centers.

Main Economics Data of RBNZ

  • GDP in New Zealand only grew by 2.3% annually in the fourth quarter of 2018, down from 2.6% in the previous period and under the market expectation of 2.5%.
  • Consumer prices in New Zealand rose 1.5% year-on-year in the first quarter of 2019, down 1.9% over the previous three months and under the expectation of 1.7%.
  • The New Zealand unemployment rate dropped to 4.2% in the first quarter of 2019 from 4.3% in the previous period, similar to market expectations and almost 10 years low.

Expected Bias: NZD Bearish

  • The latest inflation rate in New Zealand posted weakness.
  • The unemployment rate rose from the lowest 10 years while the job sector slowed down.
  • The RBNZ reduces the interest rate and the dovish meeting tone.
  • New Zealand Manufacturing PMI declined to 50.2 in May 2019 from 53.0 the previous month.
  • Given that the RBNZ lowered interest rates, weakening spending and weak manufacturing activities, New Zealand’s GDP data this week is expected to decline.

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