Investing.com - The New Zealand dollar traded higher against its U.S. rival during Thursday Asian session after a stronger-than-expected second-quarter GDP report.
In Asian trading Thursday, NZD/USD rose 0.42% to 0.8406. The pair was likely to find support at 0.8318, the high of May 13 and resistance around 0.8425.
The kiwi climbed against the greenback after Statistics New Zealand said the country’s second-quarter GDP rose 2.5%, beating the consensus estimate of 2.3%. While agriculture output fell 10%, construction climbed 15%, led by gains in housing and infrastructure projects.
The Reserve Bank of New Zealand has previously hinted it will raise interest rates early next year if the country’s housing market gets too hot. Statistics New Zealand said civil engineering spending climbed to its highest levels since 1992.
Exports, which make up about 30 percent of the economy, declined 5.9 percent as overseas shipments of meat and dairy products dropped. Imports gained, Bloomberg reported.
"The cumulative effect of the drought has been significant," Statistics New Zealand said in a report. "Because of the strong increase in slaughter numbers, especially for dairy cows, it may take longer to recover from than previous droughts."
The GDP report came a day after data showed that New Zealand's trade deficit expanded less than expected in the second quarter, falling to NZD1.25 billion from a deficit of NZD0.66 billion in the the three months to March.
The kiwi was also supported by news that the Federal Reserve will not taper its quantitative easing program, news that provided a lift to riskier assets such global equities.
Elsewhere, NZD/JPY climbed 0.71% to 82.58 while AUD/NZD slid 0.54% to 1.1317.
In Asian trading Thursday, NZD/USD rose 0.42% to 0.8406. The pair was likely to find support at 0.8318, the high of May 13 and resistance around 0.8425.
The kiwi climbed against the greenback after Statistics New Zealand said the country’s second-quarter GDP rose 2.5%, beating the consensus estimate of 2.3%. While agriculture output fell 10%, construction climbed 15%, led by gains in housing and infrastructure projects.
The Reserve Bank of New Zealand has previously hinted it will raise interest rates early next year if the country’s housing market gets too hot. Statistics New Zealand said civil engineering spending climbed to its highest levels since 1992.
Exports, which make up about 30 percent of the economy, declined 5.9 percent as overseas shipments of meat and dairy products dropped. Imports gained, Bloomberg reported.
"The cumulative effect of the drought has been significant," Statistics New Zealand said in a report. "Because of the strong increase in slaughter numbers, especially for dairy cows, it may take longer to recover from than previous droughts."
The GDP report came a day after data showed that New Zealand's trade deficit expanded less than expected in the second quarter, falling to NZD1.25 billion from a deficit of NZD0.66 billion in the the three months to March.
The kiwi was also supported by news that the Federal Reserve will not taper its quantitative easing program, news that provided a lift to riskier assets such global equities.
Elsewhere, NZD/JPY climbed 0.71% to 82.58 while AUD/NZD slid 0.54% to 1.1317.