NZ Dollar Among Weakest Currencies Despite Trade Surplus

The New Zealand dollar, together with its Australian counterpart, was the weakest among most-traded currencies on the Forex market today. Like the Aussie, the kiwi was unable to profit from better-than-expected domestic macroeconomic data.
Statistics New Zealand reported that the trade balance turned to a surplus of NZ$547 million in December from a deficit of NZ$791 million in the preceding month. Economists had predicted a much smaller surplus of NZ$100 million. Exports rose by NZ$255 million (4.8%), while imports fell by NZ$283 million (5.4%). The quarterly trade balance registered a deficit of NZ$846 million, while the annual trade balance logged a deficit of NZ$4.3 billion.
Despite the positive monthly print, the New Zealand currency was among losers during Thursday’s trading. The explanation for such behavior was simple — fears of the coronavirus, which made investors reluctant to amass riskier currencies linked to commodities and economic growth. Traders’ mood remained sour as the number of confirmed cases surged above 7,000. Google will temporary close its offices in China, following a similar move by Apple and Facebook. China has extended the Lunar New Year holiday till February 2 in an effort to limit movement of people and avoid gathering of large groups.
NZD/USD dropped from 0.6525 to 0.6506 as of 8:11 GMT today. EUR/NZD rallied from 1.6867 to 1.6930. GBP/NZD advanced from 1.9939 to 1.9966.

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