News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • If all these new demands get incorporated in the final package, the legislation's price tag will drop significantly. We could be looking at something close to $1.5 trillion or even less $USD $XAUUSD https://t.co/xJtlAECDFD
  • *Reminder: Weekly Strategy Webinar Tomorrow Morning at 8:30am ET on DailyFX! https://t.co/lxd5fZnn4H
  • According to GS, S&P 500 daily returns are positively correlated with flows. Over the last 3 months, flows have been strong, but the $SPX was flat (model predicted a 7% rally). When SPX returns and flows deviate, they tend to mean-revert in subsequent periods #trading https://t.co/2JbZV2dbAa
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/tWwIzXWwj3
  • Further your forex knowledge and gain insights from our expert analysts @ddubrovskyFX and @FxWestwater on JPY with our free Q4 market analysis guide, available for free today.https://t.co/mzeJ5x73N3 https://t.co/lDBYbDLQtZ
  • How does stock market liquidity benefit its traders? Learn more here: https://t.co/FWKyIDUwAw https://t.co/tyoYrsh8mQ
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/4078fnQJON
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/kIIBffEMi7 https://t.co/tt59BU8lnS
  • Quarterly earnings from Netflix and Tesla, two big tech companies, will take center stage next week and could set the trading tone for the S&P 500 and the Nasdaq 100. Get your weekly equities forecast from @DColmanFX here: https://t.co/NOCqjJ3TLd https://t.co/HR5xUZeJXp
  • Do you know the difference between investing and trading? Because while the goal might seem the same, they're very different things . Learn more here.https://t.co/fG6fNEPj9q https://t.co/ymGaYjrl1g
New Zealand Dollar Recovers from Mostly Sour Trade Data

New Zealand Dollar Recovers from Mostly Sour Trade Data

Daniel Dubrovsky, Strategist

Talking Points:

  • The New Zealand Dollar recovered versus its peers in the aftermath of mostly sour trade data
  • New Zealand’s trade deficit narrowed slower than expected while imports beat expectations
  • Uncertainty over the new government’s promise to “review and reform” the RBNZ still apparent

Have a question about why the New Zealand Dollar did what it did? Join a Q&A webinar and ask it live!

The New Zealand Dollar recovered after falling against its major counterparts on September’s trade data. New Zealand’s monthly trade deficit shrank to –NZD1143m from –NZD1179m in August. However, this was wider than the –NZD900m projection.

The on-year reading also showed the deficit narrowing from –NZD3154m to –NZD2908. This was wider than the –NZD2706m estimate. Still, this was the least negative balance since July 2015.

Continuing with the misses, exports only rose NZD3.78b versus NZD3.90b expected. This was up from NZD3.68b prior which was a 1-year low. The only beat was that imports rose NZD4.92b versus 4.88b expected. This was the highest level since September 2014, a 3-year high.

The Kiwi Dollar initially fell on the trade balance miss probably because of the importance of exports in New Zealand. According to the World Bank, merchandise trade account for about 37.7% of New Zealand’s GDP. All else being equal, if imports rise faster than exports, it could potentially lower a country’s gross domestic product which in turn could affect how the central bank proceeds with monetary policy.

Speaking of the Reserve Bank of New Zealand, it has come into focus for the country’s newly formed government. Labour leader Jarcinda Ardern’s promise to “review and reform” the Reserve Bank Act may materially end up changing the central bank’s decision making process. This has in turn sapped the appeal of the New Zealand Dollar. With that in mind, perhaps this uncertainty made traders hesitant to over-commit on direction, especially given recent losses.

New Zealand Dollar Recovers from Mostly Sour Trade Data

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES