New Zealand Dollar Maintains Strength Following Q2 GDP Results أ¢آ€آ“ Exports May Fall to Lowest Since January 2008
The New Zealand dollar was the strongest major currency on Wednesday after rallying overnight following the better-than-expected Q2 GDP results. Overnight, data is projected to show that the New Zealand trade deficit widened to NZ$329 million in the month of August from NZ$163 million, and this is likely to be due primarily to a rise in imports to NZ$3.45 billion from NZ$3.34 billion. Indeed, the latest GDP results for the nation showed that consumption helped lift the economy out of recession, but this increase in demand has been to the detriment of the trade balance. This is especially so since the New Zealand dollar has spiraled higher in recent months, cooling foreign demand for New Zealand-made exports. In fact, exports are projected to fall to NZ$3.1 billion, the lowest since January 2008, from NZ$3.18 billion. If the New Zealand trade deficit widens in line with or more than expectations, NZDUSD could pull back further from the pair's Asian session high of 0.7311.