The New Zealand dollar dropped against its US counterpart and the Japanese yen today even though domestic fundamentals were supportive for the currency as the nation’s trade balance demonstrated an unexpected surplus.
New Zealand’s trade excess widened to NZ$350 million in May from the revised NZ$183 million in the prior month. The actual value was far better than the pessimistic analysts’ forecast of a NZ$90 million deficit. Yet this did not help the NZ dollar much, most likely because the uncertainty associated with the Greek crisis deterred traders from buying riskier currencies.
NZD/USD sank from 0.6902 to 0.68500 and NZD/JPY dipped from 85.31 to 84.82 as of 14:11 GMT today. Both currency pairs erased their gains of the previous two days.
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