Rebound in Sentiment to Challenge Kiwi Record Highs- Traders Eye CPI

The kiwi advanced more than 0.85% this week hitting record highs just above 0.85-figure after data showed that growth on the isle-nation surpassed even the most optimistic estimates. Wednesday’s 1Q GDP figures bested forecasts with a print of 0.8% q/q and 1.4% y/y with both figures nearly tripling expectations. The kiwi surged on the news as rate hike expectations climbed on speculation that the Reserve Bank of New Zealand would show increased willingness to move on interest rates as the central bank sees a faster domestic recovery.