New Zealand Q2 GDP +0.4% q/q (expected +0.6%)

New Zealand Q2 GDP misses on expectations

+0.4% q/q,

• expected +0.6% and prior was +0.2%

+2.4% y/y,

• expected +2.5% and prior was +2.7%, revised from +2.6%

An improvement on the Q1 result for the q/q, but below expectations

The NZD was marked lower immediately on the miss on expectations:

Initial support around 0.6330/35, resistance now 0.6355/60

-

At the margin this is going to be supportive of further RBNZ rate cuts. In their most recent Monetary Policy Statement the bank forecast for this was at +0.6%, so today's miss will be noted by the bank as another tick in the rate cut box.