New Zealand Dollar Little Changed as Trade Deficit Tightens, GDP Ahead
DailyFX.com -
Talking Points:
New Zealand trade deficit decreased for the third straight month to –NZ$705 million
Exports were reported at NZ$3.86B, falling below analyst expectations for NZ$4B
New Zealand reported imports at NZ$4.56B, beating analyst estimates for NZ$4.5B
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The New Zealand Dollar strengthened 0.14 percent against the US Dollar in the hour following data that showed the country’s trade deficit decreased for a third straight month. Exports from the island nation in November were reported at NZ$3.86 Bln, underperforming analyst expectations by NZ$4 Bln and falling 5.4 percent year-over-year. New Zealand imported NZ$4.56 Bln goods and services, greater than analyst expectations of 4.5Bln, and falling 6.4 percent year-over-year.
Total year-to-date balance of trade was reported at –NZ$3.1Bln, as lumber and dairy exports increased. Meat sales fell 32 percent following a decrease in sales to the US and China. Dairy exports fell in November by 7 percent, the largest decline since August.
Despite the reserved response to the trade figures, the New Zealand Dollar may not be spared from volatility for the week just yet. On Wednesday at 21:45 GMT, New Zealand will release its GDP figures for the third quarter. Forecasts call for a slight curb in pace for the quarter from 0.9 to 0.8 percent with the year-over-year figure holding course at 3.6 percent. With liquidity draining heading into the holiday weekend, it is difficult to generate volatility. However, a significant surprise from this report could charge the Kiwi Dollar.
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