Fundamental indicators for NZD and New Zealand

The list of economic indicators shown below is of high relevance to New Zealand and therefore for its currency, the New Zealand dollar, and should be followed carefully for traders and investors who trade in this currency. However, is important to take into account that this country does not publish indicators very often.

Gross Domestic Product (PIB)

The Gross Domestic Product of New Zealand is a quarterly indicator of total production and consumption of goods and services in the country. This indicator is calculated by the sum of expenditures of households, companies, governments and the net foreign purchases. In this case the GDP price deflator is used to convert the product measured and calculated at the current prices in a GDP expressed in constant dollars. This information is used to determine where New Zealand is in the business cycle. Usually, it is estimated that rapid GDP growth is inflationary, while a low or negative growth is a sign of weakness in the economy and even recession.

Consumer Price Index

The Consumer Price Index (CPI) in New Zealand is an indicator that measures the quarterly changes in the price of a basket of goods and services which represents a high percentage of the population surveyed, formed by urban households. The CPI covers a wide variety of goods and services, including housing, food, health, transportation and education. It is a key indicator to watch for every traders interested in the NZD market, since changes in monetary policy in New Zealand are made taking into account the CPI as a measure of inflation.

Balance of Goods and Services

The information presented by the balance of payment of New Zealand consists of records of transactions values in the country in terms of goods, services, income and transfers with the rest of the world, along with the changes in obligations and financial assets of New Zealand with other countries abroad. The declaration of International Investment Position of New Zealand shows, at a given point in time, all international obligations and financial assets that the country has.

Production Price Index

The Producer Price Index (PPI) is a family of indexes that measures average changes in selling prices obtained by domestic producers of New Zealand. This indicator tracks the prices of virtually all goods-producing industry in the economy, including electricity and gas, agriculture, fisheries, forestry, mining and manufacturing. Usually the currency market tends to focus on the details of the PPI of finished goods seasonally adjusted, and how reacts this indicator monthly, quarterly, semiannually and annually. In New Zealand, the PPI is issued each quarter.

Private Consumption

It is an indicator consisting of a national measure of current consumption of households in New Zealand, as well as the services of private nonprofit institutions. Includes purchases of durable goods and purchases of nondurable goods, however the indicator excludes the costs incurred in the purchase of homes or capital expenditures by companies without legal personality.