Kiwi drops after soft New Zealand trade data, RBNZ now in focus

New Zealand’s weaker than forecast trade report for September led to a dip to $0.6740 before steadying around 0.6760.

New Zealand’s trade deficit reached a 12-month high last month as exports falter and dairy prices remain sour.

The deficit was NZ$1.222bn in September, marking the fourth trade shortfall in a row.

While the September deficit is actually smaller than the N$1.359bn gap one year before, the last two deficits are each above NZ$1bn.

Focus now turns to the Reserve Bank of New Zealand’s policy meeting on Thursday.

Having already delivered three rapid-fire rate cuts, is expected to leave interest rates unchanged this week as it studies recent encouraging developments in the economy.

Many economists expect the official cash rate (OCR) to stay at 2.75 percent at the October 29 policy review. However, almost all see a cut at the next meeting in December.

The RBNZ which reviews its cash rate eight times a year, lowered the OCR by a quarter point in each of the past three meetings.

The post Kiwi drops after soft New Zealand trade data, RBNZ now in focus appeared first on Forex Circles.

Source:: Kiwi drops after soft New Zealand trade data, RBNZ now in focus