Trade Surplus Makes New Zealand Dollar Stronger

The New Zealand dollar advanced today after the nation’s traded balance posted a surplus for the first time in eight months as commodity prices continue to advance.

The New Zealand trade balance posted the surplus of NZ$194 million in February. The reading was definitely better compared to the January decrease by NZ$3 million, but still somewhat lower than the forecast NZ$238 million. The exports rose $550 million, while the imports increased $684 million. The major contributor to the increase of the exports was the milk powder, butter, and cheese commodity group.

Kiwi Strengthens on Positive Data from Asia

The New Zealand dollar strengthened today as the signs of improving global economy and the accelerating economic growth in Asia, particularly in China, causes the speculation that the demand for the currency will rise.

The MSCI Asia Pacific Index of shares climbed 0.6 percent. China demonstrated the stable economic growth, bolstering the kiwi as China is New Zealand’s second biggest export market. The positive economic data encourages the analysts to say that the kiwi would jump past its resistance levels versus other currencies.