New Zealand’s first quarter (Q1) 2022 Gross Domestic Product (GDP) dropped to -0.2% on QoQ compared to 0.6% market forecasts and 3.0% previous readings.

Further details suggest the YoY figures easing to 1.2% versus 3.3% market consensus and 3.1% prior.

Following the NZ GDP data release, NZD/USD refreshed intraday low to 0.6265 by flashing a 15-pip downside. That said, the pair rallied the most in two weeks the previous day after the Fed’s 75 bp rate hike.

About New Zealand GDP

The Gross Domestic Product (GDP), released by Statistics New Zealand, highlights the overall economic performance on a quarterly basis. The gauge has a significant influence on the Reserve Bank of New Zealand’s (RBNZ) monetary policy decision, in turn affecting the New Zealand dollar. A rise in the GDP rate signifies improvement in the economic conditions, which calls for tighter monetary policy, while a drop suggests deterioration in the activity. An above-forecast GDP reading is seen as NZD bullish.