In March in New Zealand, exports jumped 19% yoy to NZD 5.7B, hitting a record for any month. Imports, on the other hand, dropped -3.4% yoy to NZD 4.8B. Trade balance came in at a NZD 922m surplus, highest since April 2011, and beat expectation of NZD 131m.
International statistics manager Tehseen Islam said, “exports to China were the leading contributor to increases in several primary sector commodities including dairy products, beef, lamb, and forestry products.”
NZD/USD recovers notably after the release. A temporary low should be formed at 0.6580, ahead of 0.6551 support. Some consolidations would be seen first. But near term outlook will remain bearish as long as 0.6718 resistance holds. The corrective pattern from 0.6424 low should have completed. Break of 0.6551 support will likely resume larger down trend through 0.6424 low.
