NZ Terms of Trade Worsen, Kiwi Response Muted
NZ terms of trade worsen, but less than expected > Markets still focused on Bernanke testimony > NZD flat
The New Zealand Dollar was barely changed after data showing that the nation’s terms of trade worsened by less than expected in the 4th quarter of 2011. According to the data, an index tracking the prices of the South Pacific economy’s exports versus the prices of its imports fell 1.4 percent, less than consensus estimates of a 1.9 percent drop. The change for the 3rd quarter was revised up from minus 0.7 percent to minus 0.6 percent. The figures come after trade data earlier this month showing that New Zealand unexpectedly ran a trade deficit in January.
Chart generated using FXCM Strategy Trader
Reaction to the data on the currency markets was muted, with the Kiwi having already experienced a sharp move lower against the US Dollar after Fed Chairman Ben Bernanke dampened expecations of further monetary stimulus.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.