New Zealand GDP grew 0.5% qoq in Q2, above expectation of 0.4% qoq. Services industries grew 0.7%, accelerated from 0.3%. Services growth was also wide-spread, in 8 out of 11 industries. Primary industries expanded 0.7%, rebound from two consecutive declines. However, goods-producing industries fell -0.2%, following 1.9% rise back in Q1.
NZD/USD stays soft after the release even though reaction was relatively muted. The decline was mainly due to the hawkish Fed cut overnight. Corrective recovery from 0.6269 should have completed at 0.6450 already. As long as 0.6362 minor resistance holds, further fall should be seen to retest 0.6269 next.
