The New Zealand dollar's reaction to yesterday's worse-than-expected current account deficit data was sharp but short, a pattern likely to be repeated for today's gross domestic product number.
The New Zealand dollar had been trading around US62c immediately before Statistics New Zealand reported the March year current account deficit had hit a record $14.5 billion.
Immediately after the news at 10.45am, the kiwi fell more than half a cent to US61.43c.
It recovered over the session to close at US61.65c.
Against the Australian dollar the kiwi fell harder, closing at A83.20c after trading at around A84c before the data was released.
But Deutsche Bank Sydney currency strategist John Horner said the kiwi's reactions to a string of worse than expected data releases in recent quarters had tended to be "one-day- type events".
"We wouldn't expect it to have a substantial impact in coming days."
While the market would focus on today's GDP data, "it is referring to a period that is now quite some time ago".
"Probably more important will be how the data unfolds on the domestic economy, in particular areas such as the housing market."
Dollar takes sharp hit before bouncing
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