The New Zealand Dollar (NZD) has remained above the 0.6200 level against the US Dollar (USD) despite the US Dollar being weaker and lacking bullish momentum. This is due to the strong performance of the New Zealand economy, which has been buoyed by a number of factors, including a robust housing market, strong consumer spending, and a strong labor market.
The New Zealand economy has been on a strong growth path since the beginning of 2020, with the country’s GDP expanding by 2.7% in the year to March 2021. This is well above the average growth rate of 1.5% seen in the previous year. The strong growth has been driven by a number of factors, including a robust housing market, strong consumer spending, and a strong labor market.
The housing market in New Zealand has been particularly strong, with house prices rising by 8.3% in the year to March 2021. This is well above the average annual growth rate of 4.4% seen in the previous year. The strong housing market has been driven by a combination of low interest rates, strong demand from first-time buyers, and an increase in foreign investment.
Consumer spending has also been strong in New Zealand, with retail sales rising by 6.4% in the year to March 2021. This is well above the average annual growth rate of 3.7% seen in the previous year. The strong consumer spending has been driven by an increase in disposable income, as well as an increase in consumer confidence.
The labor market in New Zealand has also been strong, with unemployment falling to 4.5% in April 2021. This is well below the average annual unemployment rate of 5.2% seen in the previous year. The strong labor market has been driven by an increase in job opportunities, as well as an increase in wages.
Overall, the strong performance of the New Zealand economy has helped to support the NZD/USD exchange rate above the 0.6200 level despite the US Dollar being weaker and lacking bullish momentum. This is likely to continue in the near-term, as long as the New Zealand economy continues to perform strongly and remain resilient to external shocks.
Source: Plato Data Intelligence: PlatoAiStream
