The New Zealand dollar sank today as the nation’s trade balance worsened, though it was better than analysts forecast. Market experts still view the currency in a positive light, saying that fundamentals are extremely supportive.
The New Zealand trade balance posted a surplus of NZ$285 million in May, which was bigger than forecast NZ$250 million but far smaller than the previous month’s value of NZ$498 million. On an interesting note, the South Pacific country expanded its trade with China as exports to the Asian nation rose by NZ$204 million to NZ$868 million. Economists say that the New Zealand dollar is the most sought after currency by carry traders compared to its developed-nation peers.
NZD/USD fell from 0.8779 to 0.8761 as of 12:57 GMT but not before reaching the daily high of 0.8793, which was not that far from the all-time high. NZD/JPY dropped from 89.30 to 88.84.
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