NZD/USD Gains Limited to 0.5750 Despite NZ Growth Recovery
NZD/USD has edged 0.2% higher to 0.5730 after New Zealand Q3 GDP surprised to the upside, growing 0.6% quarter-over-quarter versus 0.4% expected. Despite the positive growth data, the kiwi's gains remain capped as markets question whether the economic rebound can be sustained amid aggressive RBNZ rate cuts. The central bank has already reduced rates by 125 basis points this cycle, with another 50bp cut priced for February. Technical resistance at 0.5750 continues to cap advances, coinciding with the 50-day moving average. Support holds at 0.5680, last week's low. The GDP beat marks New Zealand's exit from technical recession, but elevated household debt and cooling housing market conditions suggest the recovery remains fragile. Traders remain cautious on NZD upside potential given the RBNZ's dovish stance and global growth concerns weighing on commodity currencies.
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