The economy in New Zealand grew by 1.1% in the first quarter of 2012. This is far better than the early expectations of a modest 0.5% growth. NZD/USD made a push to 0.80 on the news, but couldn’t break it so far. It continues trading in a nice uptrend channel since the beginning of June. This news raises the chances for a rate hike, although there are 3 things to watch out for. NZD USD Rises After GDP – Click image to enlarge The kiwi is enjoying a very steady rise. Uptrend support is more significant than uptrend resistance. The 0.80 line is an important psychological barrier. 0.79 provides support for now. More lines are in the NZD/USD forecast. It is interesting to note that the this growth comes on top of an upwards revision to Q4 2011 data: from +0.3% to +0.4%. The chances of a rate hike have risen in New Zealand following this truly impressive figure. A hike could give NZD/USD another boost, and there’s more room on the upside. However, it’s important to note that: The figure is for Q1 2012. The world was in better shape during the first quarter. This can be seen in global PMIs, US jobs and the general sentiment, which has worsened from the beginning of May. China is slowing down – the most recent unofficial Chinese PMI points to further contraction in the manufacturing sector. New Zealand needs Asian demand for its economy. A stronger NZD lowers the chances of a hike – the governor of the RBNZ, Alan Bollard, clearly stated in the past that he wants a weaker currency. While the central bank does not intervene directly, a higher value means lower inflation and a lower chance of a hike. Further reading: German Economic Sentiment Goes Negative – EUR/USD Slides 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 UK Retail Sales Rise 1.4% in May – GBP/USD Ticks Up Yohay Elam 10 years The economy in New Zealand grew by 1.1% in the first quarter of 2012. This is far better than the early expectations of a modest 0.5% growth. NZD/USD made a push to 0.80 on the news, but couldn't break it so far. It continues trading in a nice uptrend channel since the beginning of June. This news raises the chances for a rate hike, although there are 3 things to watch out for. [caption id="attachment_36276" align="alignnone" width="610"] NZD USD Rises After GDP - Click image to enlarge[/caption] The kiwi is enjoying a very steady rise. Uptrend support is more… Regulated 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.