New Zealand’s Q1 GDP growth of 1.5% YoY exceeds forecasts, lifting the NZD as a US-Iran deal boosts risk sentiment.
The NZD/USD pair rose to 0.5790 in Asian trading, supported by stronger-than-expected New Zealand GDP data and easing geopolitical tensions. First-quarter GDP grew 0.8% QoQ and 1.5% YoY, topping estimates of 0.9% and 1.1%, respectively, though below prior quarter revisions.
The data follows a revised 0.5% QoQ expansion in Q4 2025, while annual growth matched the previous quarter’s 1.5%. Meanwhile, a US-Iran memorandum to end hostilities, signed electronically by both presidents, further buoyed risk appetite.
The Federal Reserve held rates at 3.50%-3.75% on Wednesday, citing inflation risks tied to the Iran conflict, but signaled potential future hikes.