Forex News: NZ Dollar Rises Despite Disappointing GDP Data

NZ Dollar Rises Despite Disappointing GDP Data

(RTTNews) - The New Zealand dollar strengthened against other major currencies in the Asian session on Thursday, despite the release of New Zealand's gross domestic product data which showed the economy expanding less-than-expected in the fourth quarter of 2025.

Data from Statistics New Zealand showed that New Zealand's gross domestic product expanded a seasonally adjusted 0.2 percent on quarter in the fourth quarter of 2025.

That missed forecasts for an increase of 0.5 percent following the downwardly revised 0.9 percent gain in the three months prior (originally 1.1 percent).

On an annualized basis, GDP was up 1.3 percent - again shy of expectations for a gain of 1.7 percent following the downwardly revised 1.1 percent increase in the third quarter (originally 1.3 percent).

GDP expenditure was up 0.1 percent on quarter, slowing from 0.9 percent three months earlier.

Meanwhile, Asian stocks traded lower as a fresh spike in oil prices, triggered by attacks on Middle Eastern energy facilities, revived inflation concerns. Report showing stronger-than-expected increase in US producer prices and the US Fed's higher inflation projections dampened bets for near-term interest rate cuts.

The Middle East war continued to escalate as attacks on the UAE's energy infrastructure heightened fears of prolonged supply disruptions. Iran also launched missile strikes on a Qatari site housing the world's largest LNG facility after an Israeli attack on Iran's South Pars gas field.

Iran has reportedly refused to discuss any peace plans with the U.S., diminishing the expectations of an end to the war or even a ceasefire. Iran has taken this hardline stance to avenge Iran's martyrs. While Israel targeted Iran and Lebanon, Iran attacked its neighbors who host US military bases.

In the Asian trading, the NZ dollar rose to a 2-day low of 1.2094 against the Australian dollar, from yesterday's closing value of 1.2119. The kiwi may test resistance around the 1.19 region.

In economic news, Australia's seasonally adjusted unemployment rate rose to 4.3 percent in February 2026, exceeding both the 4.1percent forecast and levels seen in the previous two months. This marked the highest reading since November, as the number of unemployed increased by 35,000 to a three-month high of 659,100 from 624,200 in January.

Meanwhile, employment climbed 48,900 to a new peak of 14.75 million, easily beating estimates of a 20,300 increase and after an upwardly revised 26,000 gains in January.

The participation rate hit a four-month high of 66.9 percent, compared with estimates and December's 66.7 percent. The underemployment rate held steady at 5.9 percent.

In the currency market, the Aussie dollar is trading at $0.705 on Thursday.

Against the U.S. dollar, the yen and the euro, the kiwi advanced to 0.5828, 93.01 and 1.9708 from Wednesday's closing quotes of 0.5797, 92.67 and 1.9757, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.59 against the greenback, 94.00cagainst the yen and 1.95 against the euro.

Looking ahead, Eurozone construction output for January, labour cost and wage growth for fourth quarter are due to be released at 5:00 am ET in the European session.

At 7:00 am ET, the Bank of England's Monetary Policy Committee (MPC) announces the result of its latest U.K. interest rates. The BoE is expected to hold its interest rates at 3.75 percent in the meeting.

In the New York session, U.S. building permits for January, weekly jobless claims data, U.S. Philly Fed business conditions for March, U.S. new home sales and wholesale inventories for January.

At 8:15 am ET, the European Central Bank (ECB) is set to announce its latest decision on interest rates. The ECB is expected to leave the key deposit rate unchanged at 2 percent.

Half-an-hour later, the ECB President Christine Lagarde will deliver a speech in the press conference about the monetary policy outlook.

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