Does New Zealand Data Suggest Further Strength for NZD/USD?
March 27, 2009 by admin · Leave a Comment
The New Zealand GDP printed at -0.9% for the fourth quarter of last year as the country suffered its worst contraction in more than two decades. However, despite the falloff in output the number was actually better than the market forecast of -1.2% decline. Additionally the country’s February trade balance rebounded strongly registering a surplus of 489M versus expectations of 77M and a the prior months’ negative -101M reading. Although the improvement in trade was primarily due to a sharp drop off in imports indicating that domestic demand was weak, the numbers nevertheless should prove supportive to the kiwi propping up New Zealand’s balance sheet.
