Trading the News: New Zealand Trade Balance
Updates to New Zealand’s Balance of Payments (BoP) may curb the recent weakness in NZD/USD[1] as the region is anticipated to post a trade surplus of 198M in April.
A marked pickup in net exports may heighten the appeal of the New Zealand dollar as it boosts the outlook for growth, and the Reserve Bank of New Zealand (RBNZ) may start to adopt a hawkish tone over the coming months as ‘the recent growth in demand has been delivered by an unprecedented increase in employment.’
However, signs of a widening trade deficit may keep NZD/USD under pressure as it encourages the RBNZ to keep the official cash rate (OCR) at the record-low, and Governor Adrian Orr & Co. may continue to buy more time at the next meeting on June 27 as officials ‘expect to keep the OCR at this expansionary level for a considerable period of time.’
Impact that New Zealand Trade Balance has had on NZD/USD during the last update
|
Period |
Data Released |
Estimate |
Actual |
Pips Change (1 Hour post event ) |
Pips Change (End of Day post event) |
|
MAR 2018 |
04/26/2018 22:45:00 GMT |
275M |
-86M |
-1 |
+22 |
March 2018 New Zealand Trade Balance
NZD/USD 5-Minute Chart
New Zealand unexpectedly posted a
