Forex - NZD/USD climbs despite small trade surplus

Published 06/26/2013, 10:08 PM
Updated 06/26/2013, 10:09 PM
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Investing.com - The New Zealand dollar traded higher against its U.S. counterpart during Thursday’s Asian session despite a tepid trade surplus report released earlier in the session.

In Asian trading Thursday, NZD/USD jumped 0.43% to 0.7826. The pair was likely to find support at 0.7684, the low of June 24 and a multi-month low and broke through resistance at 0.7807, the high of June 21.

Earlier Thursday, Statistics New Zealand said the country’s trade surplus was just NZD71 million at the end of May.

Exports fell a seasonally adjusted 2.7% led by declines in meats and other edible goods. Statistics New Zealand said Australia and the U.S. were to blame for the decline in exports, which was partially offset by shipments to China.

Like Australia, New Zealand counts China as its largest export market. Exports to Australia, the U.S. and South Korea fell by NZD353 million, but exports to China rose by NZD89 million.

Imports fell by NZD4 billion. Mechanical machinery and equipment imports dropped NZD85 million.

Elsewhere AUD/NZD rose 0.085 to 1.1919 after former Prime Minister Kevin Rudd returned to power after ousting Prime Minister Julia Gillard, the woman who took power from Rudd in 2010. Gillard essentially resigned Wednesday after it became apparent that her party was headed for significant losses.

NZD/JPY climbed 0.48% to 76.53 while EUR/NZD dropped 0.28% to 1.6659.


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