NZD/USD sits at two-week highs above 0.6700 in the lead up to the all-important US Federal Reserve (Fed) monetary policy decision following which the NZ Q2 GDP figures will be released on Wednesday at 22:45 GMT. New Zealand’s (NZ) solid response to contain the coronavirus pandemic is likely to translate into a less severe economic contraction than anticipated, although stricter lockdowns and borders controls imply a slower economic recovery in the long-term. Key quotes “The South Pacific nation is set to witness the first recession in ten years, with the GDP likely to shrink 12.8% QoQ in the three months to June vs. -1.6% seen in the first quarter of 2020. On an annualized basis, the economy is expected to contract 13.3% in Q2 vs. -0.2% prior.” “When compared to a weaker global outlook, NZ is expected to grow by an average 4.2% across 2021 and 2022 while the economic growth in Australia the US is foreseen at 3.6% and 3.5% respectively. Further, a faster-than-expected turnaround in the Chinese economy also boosts the case for a less severe economic downturn projected for New Zealand. China is NZ’s top trading partner and dairy is the Kiwi nation’s leading export product.” “A dovish Fed followed by a positive surprise on the NZ GDP figures could likely to bode well for NZD/USD, allowing for a rally towards 0.6800. While the Fed’s concerning tone on the US economic recovery could dampen the market mood and limit the impact of a shallower NZ recession.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next S&P 500 Index opens modestly higher ahead of Fed’s policy announcements FX Street 2 years NZD/USD sits at two-week highs above 0.6700 in the lead up to the all-important US Federal Reserve (Fed) monetary policy decision following which the NZ Q2 GDP figures will be released on Wednesday at 22:45 GMT. New Zealand's (NZ) solid response to contain the coronavirus pandemic is likely to translate into a less severe economic contraction than anticipated, although stricter lockdowns and borders controls imply a slower economic recovery in the long-term. Key quotes “The South Pacific nation is set to witness the first recession in ten years, with the GDP likely to shrink 12.8% QoQ in the three months… 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.