New Zealand dollar extending its losses after terrible data, forecasts for more rate cuts

The data from New Zealand was very disappointing indeed:

• New Zealand Q2 GDP -0.9% q/q (vs. -0.3% expected)

-0.9% is three times worse than what was expected.

Its prompted forecasts for more interest rate cuts from the Reserve Bank of New Zealand, Westpac tipping 75cp soon:

• Westpac forecasts Reserve Bank of New Zealand rate cuts in October and November

NZD/USD extending down towards 0.5920.