More responses coming in on the Q1 GDP report earlier in the day
- Outcome is likely to support those calling for rates to be on hold this year
- Dry weather impacting dairy production had an an impact but should prove temporary
- Bigger question is whether consumption and business investment can be sustained given net migration has most likely peaked and business confidence has remained low
In case you missed it, Eamonn had the report release here.
Analysts at TD Securities were expecting for a +1.0% q/q reading, but the figure came in at +0.6% q/q. Underwhelming, indeed.
NZD/USD tested the lows of the session after the data release but has since recovered most of its losses on the day, currently trading at 0.7324.
