NZ Dollar Little Changed After Trade Deficit Shrinks

The New Zealand dollar did not move far today, either staying flat or rising just a bit against its most-traded rivals. Domestic macroeconomic data was relatively decent but it did not have a material impact on the currency’s performance. Trading is expected to be light ahead of the Thanksgiving holiday in North America.
Statistics New Zealand reported that the trade balance logged a deficit of NZ$1.0 billion in October, down from NZ$1.3 billion in September. Exports rose NZ$206 billion (4.3%) to NZ$5.0 billion, year-on-year, while imports fell NZ$86 million (1.4%) to NZ$6.0 billion. The main contributors to the growth of exports were milk powder, butter, and cheese — the main export commodities of New Zealand. The decline on imports was led by a fall in capital goods.
With no more news about the US-China trade talks and few important events ahead of the holiday, markets will be largely driven by today’s macroeconomic releases in the United States. Due to the holiday, the date of release for many reports was shifted to today, resulting in a rather large number of releases during Wednesday’s American trading session. Among reports released today will be such important ones as PCE inflation and GDP.
NZD/USD was flat at 0.6224 as of 11:14 GMT today. EUR/NZD traded at 1.7128 after opening at 1.7139 and falling to the daily low of 1.7109. NZD/JPY edged up from 70.03 to 70.10, touching the daily maximum of 70.21 earlier.

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