New Zealand Dollar Gains Some Traction After GDP Data

2026-09-17 00:52 By Judith Sib-at 1 min. read

The New Zealand dollar rose to around $0.573 after sliding to a ten-week low, with better-than-expected GDP data providing support.

New Zealand’s economy expanded 0.2% in the three months to June, slightly exceeding the 0.1% market forecast and the Reserve Bank's expectation for no growth, though it was slower than the revised 0.9% growth in the first quarter.

Annual GDP increased 2.6%, also beating the expected 2.3%.

The figures pointed to some resilience in economic activity despite the severe energy shock stemming from the Middle East conflict.

Currently, traders are pricing in a 65% chance of another rate hike to 3.0% at the RBNZ's next meeting in October.

However, gains in the kiwi were limited by a stronger US dollar after the Federal Reserve raised interest rates for the first time in more than three years to 3.75%-4.00% and signaled that another hike was likely before year-end.



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New Zealand Dollar Gains Some Traction After GDP Data
The New Zealand dollar rose to around $0.573 after sliding to a ten-week low, with better-than-expected GDP data providing support. New Zealand’s economy expanded 0.2% in the three months to June, slightly exceeding the 0.1% market forecast and the Reserve Bank's expectation for no growth, though it was slower than the revised 0.9% growth in the first quarter. Annual GDP increased 2.6%, also beating the expected 2.3%. The figures pointed to some resilience in economic activity despite the severe energy shock stemming from the Middle East conflict. Currently, traders are pricing in a 65% chance of another rate hike to 3.0% at the RBNZ's next meeting in October. However, gains in the kiwi were limited by a stronger US dollar after the Federal Reserve raised interest rates for the first time in more than three years to 3.75%-4.00% and signaled that another hike was likely before year-end.
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