New Zealand’s goods exports dropped -0.2% yoy or NZD 9.8m to NZD 4.9B in July. Goods imports dropped -18% yoy or NZD 1.0B to NZD 4.6B. Trade surplus came in at NZD 282m, down from June’s NZD 475m, slightly below expectation of NZD 285m. Imports from all major trading partners expect China were down. On the other hand, exports to China and Japan decreased, while exports to USA, EU and Australia rose.
NZD/USD continues to hover slightly above 55 day EMA, drawing support from there. But at this point, correction from 0.6715 is still extended to extend lower. Firm break of the 55 day EMA would pave the way to 0.6385 support, and possibly to 38.2% retracement of 0.5469 to 0.6715 at 0.6239.
