- New Zealand exports fall 0.80%, imports down 1.0% in June
- Yen strengthens amid conflicting views on BoJ’s action this Friday
- Sterling comes under pressure after BoE’s Martin Weale comments
- US dollar slides ahead of FOMC meeting tomorrow
Today’s Economic events
- Japan SPPI y/y 0.20% vs. 0.10%
- UK BBA Mortgage Approvals 40.1k vs. 40.2k
Coming Up
- S&P/CS HPI
- US flash services PMI
- The US consumer confidence
- The US new home sales
- Richmond manufacturing index
New Zealand posts a trade surplus in June
New Zealand’s annual deficit saw a modest improvement, easing back to $3.3 billion from $3.6 billion in May on better than expected trade balance numbers. Data from Statistics New Zealand showed that in June, New Zealand posted a trade surplus of $127 million, slightly lower than the consensus forecasts of $150 million. It was also down from May’s $358 million.
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New Zealand Trade Balance YoY $3.3 billion, June 2016
Export values fell 0.80% on a seasonally adjusted basis as meat and log exports fell following two months of growth while dairy and fruit exports drove exports, rising 9.90% and 7.60% respectively. Goods exports increased 5.80% on the month.
Imports were down 1.0% on the month but grew at a pace of 0.50% in the second quarter. Capital goods imports contributed to nearly 15% of the imports while intermediate goods were down 3.80%. The quarterly deficit was recorded at 173 million, which accounts for 1.40% of exports but continued to record a ninth consecutive quarterly trade deficit since 2014 March.
The New Zealand dollar was seen trading stronger after the report. ASB economist, Nathan Penny said that nine out of 10 export categories posted an annual increase in June, but he said that the RBNZ could maintain its easing bias. “We expect the RBNZ to cut the OCR in August and November,†Mr. Penny said, highlighting that the data is unlikely to change the RBNZ’s stance.
