The New Zealand trade balance came in better than expected with a deficit of $168 million opposed to estimates of a $345 million deficit. This print marks the best October trade balance for New Zealand since the mid-1990s, according to the Statistics New Zealand.
Industry and labour statistics manager Louise Holmes-Olive said that “the low trade deficit was due to exported goods recording the highest value for an October month.” It was also the highest value for exports for any month since March 2013.
The primarily factor in the higher than expected print was due to the price increase in milk powder, cheese and butter. Dairy makes up a large portion of New Zealand’s gross-domestic product.
However, when adjusting for seasonal effects, the value of exported goods dropped by 8.2 percent in October when compared with the previous month.
The kiwi seen little action following the report after being down for the majority of the day. The NZDUSD is still trending downward this month after falling from a two-month high of .8543. Price action seen support at .8160, while intraday resistance will be seen at .8200 and the 20 EMA, .8210.