NZ Dollar Reverses Gains as Current-Account Deficit Widens

The New Zealand dollar dipped, reversing yesterday’s rally, as a report released today revealed that the nation’s current account deficit widened last quarter. It was the first decline this week after two sessions of gains.
New Zealand’s current account balance demonstrated a gap of NZ$2.0 billion in the June quarter, up from NZ$$1.4 billion in the March quarter. On an annual basis, the deficit shrank from 2.7 percent to 2.5 percent of gross domestic product.
The kiwi was rising together with its counterparts against the US dollar at the start of this week. Unlike some other commodity currencies, it was unable to maintain rally. The New Zealand dollar entered a downtrend at the end of July after the Reserve Bank of New Zealand announced a pause in the interest rate hike cycle, eroding support for the currency and making it vulnerable to any negative news.
NZD/USD dropped from 0.8200 to 0.8175, and NZD/JPY declined from 87.84 to 87.61 as of 2:36 GMT today. EUR/NZD advanced from 1.5798 to 1.5844.

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