New Zealand GDP grew 14.0% qoq in Q3, stronger than expectation of 12.8% qoq. That’s also the largest quarterly rise on record. However, on an annual bases, GDP dropped -2.2% over the year. Growth in Q3 was not enough to fully makeup for the economic impact of the coronavirus pandemic and the responding measures.
Looking at some more details, Services industries rose 11.1% qoq. Goods-producing industries rose 26.0% qoq. Primary industries rose 4.6% qoq.
NZD/USD broke out to the upside after the release. Further rise is expected as long as 0.7054 minor support holds. Sustained trading above 61.8% projection of 0.5920 to 0.6797 from 0.6589 at 0.7131, could bring upside re-acceleration. Next target is 100% projection at 0.7466.
However, considering relatively weak upside momentum as seen in daily MACD, break of 0.7054 support will indicate rejection by 0.7131. That’s also an early sign of short term topping. Deep pull back could be seen back to 55 day EMA (now at 0.6883).
