Shrinking Trade Surplus Makes Kiwi Weaker

The New Zealand dollar fell against most its major peers today after the government report showed that the nation’s trade surplus shrank to almost half of its previous size.

The New Zealand trade balance surplus narrowed to NZ$605 million in May from NZ$1.15 billion in April. The expected value was NZ$1.00 billion.

The increase in imports was led by petroleum and related products. The main contributors to the export increase were ships, boats, and floating structures, followed by the products created from milk. The main source of increasing imports was the United States of America. The major increase in buying of the New Zealand exports was in the People’s Republic of China.

NZD/USD dropped from 0.8078 to 0.8063 as of 22:04 GMT today, following the drop to 0.8008. EUR/NZD jumped from 1.7556 to 1.7716. Meanwhile, NZD/JPY advanced from 64.86 to 65.19.

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