New Zealand Trade Balance overview
Late Tuesday at 22:45 GMT sees the latest round of New Zealand’s Trade Balance figures, with the year-on-year figure into August expected to decline slightly to $-4.62 billion (previous $-4.44 billion), while the month-over-month figure for August is seen steepening its contraction to $-930 million (previous $-143 million). Total Exports for August are expected to slip to $4.40 billion (previous $5.35 billion), while Imports are seen holding steady at $5.50 billion (previous $5.49 billion), though with the US Fed and the Reserve Bank of New Zealand (RBNZ) both expected to come in for a landing tomorrow in broader markets, investor’s reactions to today’s trade figures will likely be limited, assuming no nasty surprises come out of the release.
How could it affect the NZD/USD?
The Kiwi is looking relatively hesitant, trapped between EMAs that are beginning to consolidate, and as FXStreet’s own Ross Burland noted, “support is located at 0.6620 and resistance is located at 0.6720. The bird remains cosolidated below the doji at 0.6680. If the bird can’t break the doji’s top at 0.6699 on a pullback, the case will be building for a sustained correction/reversal. First, the pair needs to break 0.6711 as the 76.4% retracement of the daily downtrend from 0.7393. However, on a correction of the uptrend, a drop back into the downside opens a continuation risk towards 0.6500 that would open up 0.6344 and 0.6306 on the wide.”
Key notes
NZD/USD: Aussie and CNH leading the bird lower, RBNZ to clip its wings
Trading New Zealand Dollar with New Zealand Trade Balance
About the New Zealand Trade Balance
The Trade Balance released by the Statistics New Zealand is a measure of balance amount between import and export. A positive value shows a trade surplus while a negative value shows a trade deficit. Any variation in the figures influences the domestic economy. If a steady demand in exchange for exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the NZD.
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