The New Zealand dollar was trading lower late Thursday after New Zealand’s third quarter gross domestic product numbers failed to alleviate fears over the negative impact of the euro-zone sovereign debt crisis.
Statistics New Zealand said Thursday that seasonally adjusted GDP grew 0.8% on the quarter in the three months to Sept. 30 after expanding 0.1% in the second quarter. Economists said the data was unlikely to affect monetary policy as growth was largely boosted by the Rugby World Cup which attracted more than 133,000 people to the country between July and October.
The euro fell overnight despite the European Central Bank extending euro-zone banks with a record EUR489.19 billion ($639 billion) worth of three-year low-interest loans. Investors remain unconvinced that the move will lead to a quick resolution of the euro-zone debt woes.
The market is looking to the release of U.S. and UK GDP data later in the global day. It could be a very big night especially with the U.S. GDP. We’ve seen modestly positive signs coming from the U.S. in recent months and another on-target or slightly better-than-expected result will probably see the Kiwi push higher. New Zealand government bonds rallied while interest rate swaps were little changed following a strong Debt Management Office bond tender, a local trader said.
The DMO sold NZ$150 million of March 2019 bonds at a weighted average yield of 3.63%. The bonds were trading at a yield of 3.65% prior to the auction.
EasyForexNews Research Team