FX & CFD trading involves significant risk
New Zealand has recorded its biggest monthly trade surplus on the back of higher prices for dairy products, the country’s top export earner, in a positive sign for a nation hit hard by two recent earthquakes and years of weak economic growth.
The NZ$1.11bn ($908m) trade surplus for April was nearly double economists’ forecasts and helped push the New Zealand dollar to its highest level against its US counterpart since the currency was floated in 1985.
Fonterra, the dairy farmer’s co-operative that accounts for about a fifth of the nation’s exports, recently said that March was its best month for export volumes thanks to rising demand from China, south-east Asia and the Middle East.
Strengthening trade links with China have also helped drive the record trade surplus. Exports to China have risen by nearly 40% in the 12 months ended in March.
New Zealand’s gross domestic product rose 0.2% in the final quarter of 2010 compared with the three months ended September.
However, the devastation caused by February’s earthquake in Christchurch, the second seismic event within six months, is expected to see the economy shrink by about 0.2% in the three months ended in March.
Nevertheless, the economy is expected to strengthen as 2011 continues with growth of about 1.3% for the year, rising to 3.7% in 2012.
EUR/USD fell from Asian high on $1.4305 to the lows near $1.4255 before recovered a bit to current $1.4284. Resistance comes between $1.4285/90.
GBP/USD holds tight, challenging the placed between $1.6460/50 so far able to contain and support rate. Stops noted through $1.6445/40 with further support noted into $1.6430.
USD/JPY holds within the Y80.75/90.
There is no major data for today.
US markets are closed for Memory Day holiday.
Among the figures from Canada investors may digest GDP and Trdae Balance data at 12:30 GMT.
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