NZ Dollar Retreats as Current Account Deficit Widens

The New Zealand dollar slid today as the current account deficit widened last quarter and as investors were cautious ahead of today’s Federal Reserve policy decision.

The New Zealand current account posted a deficit of NZ$2.2 billion in the second quarter of 2013, $0.1 billion above the first quarter’s gap (which was revised positively). The median forecast promised bigger shortage. Analysts remain optimistic about the New Zealand economy and, as a result, about the nation’s currency as well. Tomorrow’s report is expected to show relatively stable economic growth.

NZD/USD slid from 0.8233 to 0.8211 and NZD/JPY edged down from 81.59 to 81.19 as of 14:00 GMT today.

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