After dropping yesterday due to an unexpected widening in New Zealand’s trade deficit the ‘Kiwi’ bounced back as a result of increasing business confidence in the nation.
The New Zealand Dollar exchange rate was trading in the region of 0.8315 against the US Dollar as of 10:27 am
After the New Zealand trade deficit widened, defying economist’s predictions, the ‘Kiwi’ initially slumped, posting notable losses against several of its most traded peers.
January’s deficit stood at $305 million, largely as a result of a larger-than-forecast drop in exports (including dairy products) and an increase in imports.
After the news was published Michael Gordon, of Westpac Banking Corp, commented: ‘The deterioration in the January trade balance was in part payback for its surprising bounce in the previous month. We still expect a modest pickup in export earnings over this year, as the impact of higher world dairy prices has yet to flow through.’
Other industry experts predicted that the news wouldn’t hold the ‘Kiwi’ down for long, and it seems they were right.The South Pacific currency has since climbed its way back to trade above 83 US cents.
The South Pacific currency has since climbed its way back to trade above 83 US cents.
The New Zealand Dollar’s gains were triggered by an optimistic business confidence survey.
The ANZ Business Outlook data revealed that business confidence hit a 19-month high in February, with firms feeling more positive about their own activity.
The New Zealand Dollar was additionally boosted as a separate report showed that the drop in Australian capital spending wasn’t as steep as feared.
These factors saw the ‘Kiwi’ post modest gains against its Australian and Japanese counterparts. It also traded modestly higher against the Euro.
In the hours ahead New Zealand Dollar movement could be caused by the nation’s Terms of Trade Index, the Australian AiG Performance of Manufacturing Index and developments in Japan.
Current Exchange Rates for New Zealand Dollar
The New Zealand Dollar to Euro (NZD/EUR) exchange rate is trading at 0.6333
The New Zealand Dollar to Pound Sterling (NZD/GBP) exchange rate is trading at 0.5473
The New Zealand Dollar to US Dollar (NZD/USD) exchange rate is trading at 0.8315
The New Zealand Dollar to Australian Dollar (NZD/AUD) exchange rate is trading at 0.8093
The New Zealand Dollar to Canadian Dollar (NZD/CAD) exchange rate is trading at 0.8469
The New Zealand Dollar to Japanese Yen (NZD/JPY) exchange rate is trading at 76.4962
These exchange rates were correct as of 10:27 am
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