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Forex - NZD/USD higher after terms of trade data

Published 05/30/2013, 10:27 PM
Updated 05/30/2013, 10:37 PM
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Investing.com - The New Zealand dollar rose against its U.S. rival during Friday’s Asian session following the release of some strong terms of trade data.

In Asian trading Friday, NZD/USD rose 0.15% to 0.8088. The pair was likely to find support at 0.8054, Wednesday's low and resistance at 0.8163, Wednesday's high.

Earlier Friday, Statistics New Zealand said the country’s merchandise terms of trade rose 4.1% in the first quarter.

"The terms of trade rose this quarter, after falling for six consecutive quarters from their peak in 2011," prices manager Chris Pike said in a statement. "Export prices rose for the first time since the December 2011 quarter."

In the March 2013 quarter, the price of exported goods rose 1.9 percent, reflecting higher prices for dairy. Lower meat prices partly offset the rise. Seasonally adjusted export volumes rose 0.9 percent, led by meat. The trend for export volumes has risen for seven consecutive quarters, according to the statement.
 
Seasonally adjusted dairy export volumes rose 2.2 percent after a fall of 13 percent in the December 2012 quarter, while prices rose 6.8 percent after six consecutive falls. Both volume and price movements were strongly influenced by milk powder, said Statistics New Zealand.

The terms of trade data arrived a day after data showed that building consents in New Zealand rose 18.5% last month, after a 8.3% decline the previous month.

The kiwi came under pressure Thursday after Reserve Bank of Governor Graeme Wheeler said he is prepared to keep intervening in the forex market in an effort to weaken the kiwi. RBNZ has passed on interest rate cuts and quantitative easing.

Elsewhere, NZD/JPY rose 0.45% to 81.72 while AUD/NZD fell 0.14% to 1.1951.


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