New Zealand trade deficit widens in March, NZD/USD stays pressured
As per the latest New Zealand (NZ) foreign trade numbers from the New Zealand Statistics, the headline Trade Balance dropped to $-1,273M MoM in March versus $-796M prior (revised). That said, the annual trade deficit increased to $16.4B versus $-15.72B prior figures (revised from $-15.64B).
Further details suggest that Exports rose to $6.51B during the said month versus $5.06B (revised) prior whereas Imports increased to $7.78B compared to $5.86B previous readings.
Market reaction
NZD/USD offers no major reaction to the data while pausing the corrective bounce near 0.6145 by the press time. That said, the Kiwi pair dropped heavily the previous day, mainly led by the risk aversion wave led by banking fears.
About New Zealand Trade Balance
The Trade Balance released by Statistics New Zealand is a measure of the balance amount between imports and exports, and it is published in New Zealand dollar terms. A positive value shows a trade surplus while a negative value shows a trade deficit. Any variation in the figures influences the domestic economy. If a steady demand in exchange for exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the NZD.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
