The Takeaway: New Zealand Trade Balance (Jan) > Deficit of $305m versus +$125m expected > NZD Hits Lower > NZDUSD Bearish
The value of exported goods fell 10 percent to ($378 million) to $3.3 billion, compared with January 2012, according to Statistics New Zealand. This was due to the fall in value for milk powder, butter, cheese, and crude oil. The value of imported goods fell 6.0 percent ($234 million) to $3.7 billion for January 2013. The trade balance for January 2013 was a deficit of $305 million (9.1 percent of exports). The trend for exports has been declining in the recent months, and is 5.0 percent lower than its highest peak in November 2011. The trend for imports has been falling since July 2012.
Prior to the release, the kiwi fell to its lowest level in almost eight weeks after Federal Reserve Chairman, Ben Bernanke, defended decreasing demand for risk assets. The NZD fell 0.9 percent to 82.63 U.S. cents at 2:31 PM in New York after decreasing earlier to 82.24, its lowest level since January 4th.
NZD/USD 1-Minute Chart: February 26, 2013
Chart from FXCM Trading Station, created by Courtney Edwards
--- Written by Courtney Edwards, DailyFX Research
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