26.09.2016 - Trade balance of New Zealand disappoint investors
Price of the New Zealand dollar today showed decline against the publication of weak statistics on the trade balance of the country. Thus, the deficit in August totaled 1.265 billion against the forecast of 730 million. The main reason for this deterioration is the decline in prices for milk powder in China and the UAE, as well as the decline in exports of meat due to the seasonal factor. We forecast a decline in key interest rate in New Zealand, which together with the strengthening of the US dollar will lead to lower price of the New Zealand currency to 0.6600 and 0.6450 in the medium term.