New Zealand Dollar Holds Ground Despite Unexpected Trade Deficit

The New Zealand dollar was little change against some currencies and gained against others today even though the nation’s trade balance demonstrated an unexpected deficit last month.

Statistics New Zealand reported that the trade balance turned from a surplus of NZ$172 million in February to a deficit of NZ$86 million in March. That was a total surprise to economists, who were expecting a substantial increase of the surplus to NZ$270 million. It was the first March deficit since 2008.

USD/NZD was near its opening level of 0.7059 as of 9:44 GMT today after touching the low of 0.7040 intraday — the lowest level since December 27. EUR/NZD opened at 1.7128, rallied to 1.7167, but retreated to 1.7121 later.

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