NZDUSD could resume its uptrend once the current consolidation period ends. NZDUSD has been climbing since mid-May. However, that rally has run out of steam and for the past few sessions the pair has traded sideways. That’s despite news last week of lower-than-expected GDP growth of 0.5% quarter/quarter in Q1.
The data imply that GDP growth this year could be nearer 3.0% than 3.5%. However, core inflation in New Zealand remains subdued and headline inflation is only just above the midpoint of the RBNZ’s 1%-3% target range.