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GDP growth: a key for trading the NZD

GDP growth: a key for trading the NZD

Information is not investment advice

New Zealand will publish the level of GDP growth at 23:45 MT time on December 18. The indicator shows the change in the value of all goods and services produced by the economy. This release is important, as it reflects the economic activity of a country and is used as a measure of economic health. The GDP growth has been a sensitive topic for traders of the NZD, as the Reserve bank of New Zealand cut its long term forecasts recently. Despite that, analysts anticipate the release for the third quarter to show the decent figures due to the better manufacturing data.  The second quarter’s GDP growth rate came out better than the expectations (0.5% vs. the forecast of 0.4%). What will happen this time?

If the indicator is higher than the forecasts, the NZD will rise;

If the indicator is lower than the forecasts, the NZD will fall. 

Check the economic calendar

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