Some talk about rate hikes in NZ after GDP

The market is pricing in a 16% chance of a cut from the RBNZ at the July 26 meeting. The probability grows to almost 50% by October.

Goldman is out with a note after the GDP report saying that outside of a very negative scenario in Europe it’s likely that the next rate move will be higher.

I expect NZD/USD to eventually wipe out the May drop, reaching 82 by early July.