26.06.2015 - New Zealand's trade balance could not change the mood of investors
The price of the New Zealand dollar continues to fall, despite the publication of positive statistics on the trade balance of the country. Thus, the trade surplus in New Zealand in May totaled 350 million, against an expected deficit of 90 million. Despite this, for the year, the trade deficit totaled 2.57 billion. The main reason that continues to adversely affect the indicator remains lower prices for dairy products. Thus, the cost of milk powder for the year fell by 28% compared to the same period of the last year. Exports rose 5.5% in May compared with April, while imports rose by 1.5%. Investors continue to monitor the situation in China, which is the main trading partner of the country. We recommend to keep short positions and maintain the medium-term negative outlook.