NZ Trade Balance overview
The New Zealand Trade Balance, due soon at 22:45 GMT, is expected to come in at a surplus of $100 million in NZD terms, a reading that would represent a contraction from the previous reading of $263 million. Going further, both Imports and Exports are expected to improve, with Exports forecast to lift from 5.05 billion to 5.25 billion, while Imports are expected to lift from 4.79 billion to 5.10 billion.
How could it affect the NZD/USD?
The Kiwi has been on the bearish side for this week, declining from Monday’s open at 0.6921 as traders dump the NZD in favor of safer assets; a positive reading for the Trade Balance could see confidence in the Kiwi surge, taking the NZD/USD back towards the 0.6900 handle as traders react to positive news by scooping back up the riskier NZD, while a continued slump in Imports and Exports could easily see the pair dropping back into last week’s low near the 0.6825 area.
Key notes
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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