New Zealand trade balance for February 2022:
- last month
- trade deficit -385 million vs -1.126B last month (revised from -1.082B). Estimate -808M
- imports 5.88 billion against 5.92 billion monthly (revised from 5.94 billion). Imports up 37% to over $1.6 billion from a year ago
- exports 5.49M vs 4.80B last month (revised from 4.86M). Exports were up 22% or $990 million from a year ago.
- annual trade balance -8.37B vs -7.78B last month. Imports and exports increased for all major trading partners
Petroleum and petroleum products led the rise, up $243 million (106%) to $474 million.
- Crude oil increased by $198 million (342%) in value, while quantity increased by 203%. The average unit value increased by 46%.
- Automotive diesel and gasoline increased by $37 million (22%) in value, while quantity decreased by 21%. The average unit value increased by 54%.
Monthly movements for February 2022 with major export partners (ranked by total annual exports of goods) were:
- China – up $80 million (5.4%) to $1.6 billion, driven by higher dairy products (up $103 million), partially offset by lower milk preparations, cereals, flour and starch (including infant formula), down $50 million.
- Australia – up $119 million (22%) to $662 million, driven by higher petroleum and petroleum products ($20 million), partially offset by lower fruits (down $11 million) .
- UNITED STATES – up $37 million (7.4%) to $535 million. The biggest increase was meat (up $47 million); the largest decline was wine (down $35 million).
- EU – up $62 million (25%) to $311 million, mainly due to higher sheep meat (up $45 million).
- Japan – up $71 million (34%) to $280 million, mainly due to an increase in dairy products (up $21 million).
The deficit was lower than last month and also lower than expected. The reduction in the deficit was helped by an increase in exports. Imports were slightly lower.
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/ NZDUSD
USD/USD
NZD/USD is a commonly offered currency pair representing the New Zealand Dollar or Kiwi and US Dollar. The pair is popular for exposure to a commodity currency, namely the NZD, which helps capture traders’ risk appetite. Like its Antipodean counterpart, the Australian dollar, NZD/USD is seen as carry, in part due to interest rate differentials favoring the NZD. The NZD is the seventh most liquid pair in the world at the time of writing, with the USD being the most traded currency in the world and the NZD being the tenth. What affects NZD/USD? NZD/USD is offered by virtually all retail forex brokerages and is a common pair that traders may have experience with. The pair moves based on investor sentiment and can be much more volatile than other pairs such as EUR/USD, GBP/USD and others. Given that New Zealand is the world’s largest exporter of powdered milk, this metric is a key factor when driving the pair. Any sensitivity to milk powder exports is captured via the NZD/USD. Additionally, tourism is a key contributor to the New Zealand economy and as such helps move the currency pair. Other factors of note for NZD/USD include export volumes to China as well as other important economic data releases from China. Central banks also play a huge role in the direction of the currency pair, with the US Federal Reserve and the Reserve Bank of New Zealand being closely watched by investors. Monetary policy is more than capable of sharply moving NZD/USD, which can swing much more than other normal pairs.
NZD/USD is a commonly offered currency pair representing the New Zealand Dollar or Kiwi and US Dollar. The pair is popular for exposure to a commodity currency, namely the NZD, which helps capture traders’ risk appetite. Like its Antipodean counterpart, the Australian dollar, NZD/USD is seen as carry, in part due to interest rate differentials favoring the NZD. The NZD is the seventh most liquid pair in the world at the time of writing, with the USD being the most traded currency in the world and the NZD being the tenth. What affects NZD/USD? NZD/USD is offered by virtually all retail forex brokerages and is a common pair that traders may have experience with. The pair moves based on investor sentiment and can be much more volatile than other pairs such as EUR/USD, GBP/USD and others. Given that New Zealand is the world’s largest exporter of powdered milk, this metric is a key factor when driving the pair. Any sensitivity to milk powder exports is captured via the NZD/USD. Additionally, tourism is a key contributor to the New Zealand economy and as such helps move the currency pair. Other factors of note for NZD/USD include export volumes to China as well as other important economic data releases from China. Central banks also play a huge role in the direction of the currency pair, with the US Federal Reserve and the Reserve Bank of New Zealand being closely watched by investors. Monetary policy is more than capable of sharply moving NZD/USD, which can swing much more than other normal pairs.
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