The New Zealand dollar jumped today after the nation’s trade balance posted a surplus that was much bigger than expected. The general positive market sentiment also helped the currency.
The New Zealand trade balance demonstrated a surplus of NZ$414 million in February after posting a deficit of NZ$287 million in January. The expected surplus was just NZ$2 million. The positive data does not eliminate the possibility of an interest rate cut by the Reserve Bank of New Zealand, but can make the bank postpone it. Such view helps the New Zealand currency.
The kiwi rallied with other risk-related currencies as fears about Cyprus abated. This led to rally of commodities and this helped NZD too as the New Zealand economy relies on export of raw material to a great degree.
NZD/USD rallied from 0.8346 to 0.8388 and NZD/JPY climbed from 78.57 to 79.38 as of 23:48 GMT today.
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