New Zealand Treasury forecast at least 10% contraction in Q2 2020 GDP

Early Wednesday morning in Asia, news crossed wires that New Zealand Treasury anticipates, while speaking in the Parliament, at least 10% contraction in the second quarter (Q2) GDP YoY figures.

FX implications

In a reaction to the news, NZD/USD stepped back from 0.5975 to 0.5967. The reason for the lack of moves could be traced to the mixed activity numbers from Australia, New Zealand’s largest customer. Additionally, the US dollar also consolidates its latest gains and seems to favor the kiwi pair.