New Zealand’s (NZ) second quarter (Q2) Gross Domestic Product (GDP) grew 1.7% QoQ compared to 1.0% market expectations and a prior contraction of 0.2%, per the latest report from the Statistics New Zealand. The YoY figures came in as 0.4% versus 0.2% expected and 1.2% previous readouts.

Market reaction

Following the data release, the NZD/USD pair extended the previous day’s rebound towards 0.6050.

Also read: NZD/USD remains depressed below 0.6000 mark, lowest since May 2020

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.