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: New Zealand’s Manufacturing PMI Review
- Server Time: Thursday, 22.30
- Quick view: Data is projected to be weak following the impact of New Zealand’s consumer confidence sentiment dropped significantly on survey reading released last week.
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 posted an increase of 2.5% year-on-year in the first quarter of 2019, which equaled an increase of 2.5% in the previous period.
- 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 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.
- Investors are advised to be vigilant following the expected reduction in interest rates by the Reserve Bank of New Zealand RBNZ at its August meeting.