NZD extends losses after weak GDP data, RBNZ rate cut forecasts mount

The New Zealand dollar has extended its decline across major pairs following disappointing GDP data and increasing expectations for aggressive Reserve Bank of New Zealand rate cuts. NZD/USD has dropped 0.7% to 0.5980, approaching key psychological support at 0.5950, while NZD/JPY fell 1.2% as risk-off sentiment intensified. The catalyst was weaker-than-expected GDP figures showing the New Zealand economy continues to struggle with recessionary pressures. Market analysts now forecast the RBNZ will accelerate its easing cycle, with some predicting cuts totaling 75-100 basis points over the next six months. This dovish repricing reflects concerns about economic stagnation and the need for monetary stimulus. Technical indicators show NZD/USD has broken below its 200-day moving average, signaling potential for further downside toward 0.5900. The kiwi remains vulnerable to additional selling pressure, particularly if upcoming inflation data confirms disinflationary trends that would support aggressive RBNZ action.