New Zealand’s GDP rose by 0.6% in Q1 – more than expected. This prompts more rate hikes and a long term rise for NZD/USD. Gross Domestic Product in New Zealand was expected to rise by 0.5%, and it surprised with a rise of 0.6%. It’s important to note that also the GDP for Q4 was revised to the upside – 0.9% instead of 0.8%, making the current rise even stronger. In the past two quarters, New Zealand’s growth rate matches Australia’s – exactly the same growth rates. Among the differences between the countries, there’s a key difference in the interest rate: 4.5% in Australia and 2.75% in New Zealand. New Zealand’s tightening cycle began with the initial raise from 2.5% to 2.75%, and it’s expected to continue. Alan Bollard, the governor of the RBNZ, hinted that this tightening cycle won’t be as strong as the previous ones, meaning that the interest rate won’t pass 8%, but there’s still a long way to go. With the economy growing at this rate, also the interest rate will rise at a nice rate, without too many pauses. As for NZD/USD, its moves will continue to be influenced by the general market moves as well as the local economy. Bad news from Europe sends traders to the “safe haven” currencies – the dollar, the yen and to some extent, also the Swiss Franc. The kiwi dollar, despite the sound economy, belongs to the other camp, of “risky currencies”. But side by side with the rise in the interest rate and the improvement in the economy, the kiwi will enjoy carry trading – it will be bought by long term investors seeking to enjoying the higher yield. Ready to connect with real Forex traders? Currensee is the first Forex trading social network. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Rumor: Israel to Attack Iran Soon – Reason for a Yohay Elam 12 years New Zealand's GDP rose by 0.6% in Q1 - more than expected. This prompts more rate hikes and a long term rise for NZD/USD. Gross Domestic Product in New Zealand was expected to rise by 0.5%, and it surprised with a rise of 0.6%. It's important to note that also the GDP for Q4 was revised to the upside - 0.9% instead of 0.8%, making the current rise even stronger. In the past two quarters, New Zealand's growth rate matches Australia's - exactly the same growth rates. Among the differences between the countries, there's a key difference in the interest… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.