New Zealand GDP contracted -12.2% qoq in Q2, the largest decline on record. But that’s slightly better than expectation of -12.5% qoq. Services industries, which contributed to 2/3 of the economy, dropped -10.9% qoq. Goods-producing industries, at about 1/5 of the economy, dropped -16.3% qoq. Primary industries dropped -8.7% qoq. Annual GDP in the year to June 2020 declined by -2.0%.
NZD/JPY trades lower today after failing to sustain above 4 hour 55 EMA. Focus is now back on 69.89 support. Break there will firstly resume the decline from 71.97. Secondly, that will add to the case that whole rise form 59.49 has completed with five waves up to 71.97. A deeper correction would then be underway to 68.75 support and probably further to 38.2% retracement at 67.20.
