FXStreet reports that economists at Westpac suggest that the kiwi may surge above the 0.73 level as markets are pricing a 50% chance of a 50bp move by the Reserve Bank of New Zealand (RBNZ) after New Zealand's outstanding growth data.

“NZD/USD may have completed its two-week old correction at 0.7075. If so, we will watch for a range break above 0.7170, which would signal a move beyond 0.7300.”

“Markets have priced a 100% chance of a 25bp hike in October, and a 50% chance of a 50bp move then.”

“The 2.8% QoQ gain was well above consensus at 1.1% and the RBNZ’s forecast of 0.7%. The end result of all of this is that the level of GDP as at the end of June is much higher than was previously thought, with obvious implications for capacity pressures and therefore monetary policy.”