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Cheaper New Zealand Dollar Boost Exports, Narrows Trade Gap

Monday, 29 September 2008 01:41:54 GMT

Written by Ilya Spivak, Currency Analyst

New Zealand’s Trade Balance saw the deficit shrink for the third consecutive month in August as a falling currency continued to boost exports. The monthly shortfall registered at –NZ$750 million (vs. –NZ$912 million expected), bringing the annualized trade gap to –NZ$4.28 billion. The New Zealand dollar depreciated almost 6% against its US counterpart in August having fallen -21.6% peak-to-trough so far this year. This has made the smaller antipodean nation’s goods comparatively cheaper for overseas buyers. Indeed, exports grew an annualized 34.1% in August.

For a complete listing of this week's data releases, please see the DailyFX Economic Calendar.

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