NZD / USD remains calm above 0.7100 ahead of New Zealand GDP data

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  • The NZD / USD appears to close modestly higher on Wednesday.
  • The New Zealand economy is expected to grow at an annual rate of 16.3% in the second quarter.
  • The US Dollar Index remains near 92.50 ahead of US retail sales data.

After falling to 0.7074 earlier in the day, the pair NZD / USD it reversed its direction and remains on track to close in positive territory slightly above 0.7100.

With an eye on New Zealand’s GDP data

Disappointing retail sales and industrial production data from China weighed on the NZD during Asian business hours on Wednesday.

In the second half of the day, improving risk sentiment made it difficult for the dollar to gain strength despite rising US Treasury yields and fueled the NZD / USD rebound. Currently, the US Dollar Index is posting modest daily losses at 92.55.

Earlier in the day, US data showed that the New York Fed’s Empire State Manufacturing Index improved to 34.3 in September from 18.3 in August. On a negative note, the Fed reported that industrial production expanded 0.4% in August, falling short of market expectations of a 0.5% increase.

On Thursday, Statistics New Zealand will release the GDP report, which is expected to show that the economy grew at an annual rate of 16.3% in the second quarter. A stronger-than-expected figure could help the NZD outperform its US counterpart in the first half of the day. On the other hand, NZD / USD is likely to turn south in case the GDP impression does not reach market consensus.

Technical levels

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