Exports fell 5.1% in October 2014 compared to a year ago stated Statistics New Zealand.
The trade deficit stood at -908 million, a 6 year low for the month of October. The slump in dairy prices was one of the main contributors to this figure. Although a slight improvement from September`s deficit of -1 357 million, it failed to meet estimates of -645 million.
The New Zealand dollar (NZD) is in a weak position today. The trade balance is directly linked to currency movements as an increase in exports would mean an increase in demand for the NZD, thus increasing its value. In today`s scenario, less foreigners would need to buy NZD to pay for exports and when demand drops, the value of the currency follows.
No comments:
Post a Comment