NZD/USD dumps on GDP misses and RBNZ rate cut expectations

NZD/USD dropped sharply on the release of GDP from 0.7290 to a low of 0.7266 so far.

New Zealand Q2 GDP missed expectations and arrived at Q/Q, 0.9% vs. 1.1% expected while Y/Y was 3.6% vs. 3.7% expected. The data comes after a surprisingly quiet session overnight in a volatile week for the pair and across the board in general. The bird has been one of the better performers, but today's move was the largest of the overnight sessions where the greenback has otherwise been soft. This data comes before next week's RBNZ where there had been little chance of the RBNZ easing. However, the Bank may need to stoke up the economy more and keep cutting rates at some point in time if the economy continues to struggle.

NZD/USD levels

With spot trading at 0.7268, we can see next resistance ahead at 0.7281 (Hourly 20 EMA), 0.7284 (Daily Open), 0.7284 (Daily Classic PP), 0.7297 (Daily 20 SMA) and 0.7303 (Daily High). Support below can be found at 0.7268 (Daily Low), 0.7252 (Weekly Low), 0.7239 (Weekly Classic S1), 0.7238 (Yesterday's Low) and 0.7210 (Monthly Low). Looking to candlestick patterns, we can see a Dark Cloud Cover formation on the 4-hour chart.