24.09.2014 - The New Zealand dollar continues to fall despite the data on the trade balance
Today have been published data on the trade balance of New Zealand that have traditionally led to an increase in the volatility of market prices. Thus, it became known that the country's trade deficit in August was 472 million against the expected level of 1.125 billion. Reason for the improvement was the increase in the exports to 3.52 billion, which is 0.32 billion better than expected and the reduction of import to 4.0 billion, against 4.45 billion expected.
Despite the fact that the figure came out much better than analysts' forecasts, the situation remains negative for the future prospects of the New Zealand dollar. Thus, the prices of agricultural products and raw materials, which are the main export goods of the country, reached multi-year lows. We maintain a medium-term negative outlook for the New Zealand dollar with the target near 0.75.