The NZD/USD sits a little higher, at 0.8520, this morning.Yesterday’s data showed NZ Q1 manufacturing volumesrose 0.5% in the quarter. This is slightly lower than ourexpectation. Combined with yesterday’s wholesale tradedata this has seen us finalise our Q1 GDP pick at 1.1%q/q(1.2% previously). Never mind the decimal point, anythingaround this pace is strong and well above trend. Recall theRBNZ (in its March MPS) had 0.8% forecast for Q1 GDP.We’ll see if they have upgraded that in Thursday’s JuneMPS. As for the NZD, it appeared relatively nonchalantduring much of the day before pushing a little higherovernight. It trades around 0.8500 currently. Support iseyed around 0.8470. Resistance will likely be encounteredon any probes toward 0.8550.
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