The NZD/USD inched higher after strong New Zealand trade numbers. The pair jumped 2.15% above last week’s lowest level on Friday and was trading at 0.7045.
New Zealand recorded a strong economic recovery boosted by both domestic and external demand. The country recorded strong exports and imports data.
According to the Statistics New Zealand, the monthly value of goods imports jumped 31% in May to $5.4 billion. The imports were boosted by a surge in vehicles, parts, and accessories. However, the dive in textiles and food wastes partly offset the gains.
Vehicles, parts, and accessories jumped 194% from last year recording the most gains. Petroleum and products climbed 68% while mechanical machinery and equipment rose 34%. On the flipside, textile articles nosedived 57% while food residues and wastes fell 36%.
Monthly goods exports were up $461 million (8.5%) to $5.9 billion in May. The gains were boosted by a surge in dairy products. Dairy products jumped 12% to $1.5 billion from May 2020. Milk powder rose 18% in both value and quantity. Fresh milk edged 42% higher in value and 55% in quantity.
New Zealand’s total trade surplus advanced to $469 million. It was higher than the previous five-month average of $415 million. This was after New Zealand’s strong GDP data released last week. According to the data, the economy bounced back 1.6% after recording a weak 1.0% in the previous quarter.
The strong trade numbers will most likely boost the recent hawkish RBNZ tone. New Zealand’s Central Bank (RBNZ) recently kept its interest rates unchanged albeit signaling an earlier tapering of its interest rates.
The NZD/USD pair will react to US Personal Consumer Expenditure (PCE) to be released later in the day. Economists forecast a 3.4% increase in May’s core PCE data. They also expect a 0.4% increase in spending and a 2.5% decline in personal income.