NZ Dollar Erases Losses Despite Pessimism of Traders

The New Zealand dollar advanced today, erasing its previous losses. The currency declined earlier as the trade balance surplus shrank last month and skepticism about the coming EU summit reduced demand for currencies with higher yield.

The New Zealand trade balance posted a surplus of NZ$301 million in May. The reading was in line with analysts’ expectations. That was a decrease from the March value of NZ$335 million. The meeting of European leaders will start tomorrow and will last for two day, but traders are skeptical about its outcome and generally are not willing to risk. Nevertheless, the kiwi managed to pare its earlier losses.

NZD/USD was at 0.7909 as of 16:35 GMT today, following the earlier drop from 0.7905 to 0.7875. NZD/JPY climbed from 62.80 to 63.05 after it earlier dropped to 62.58.

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