The NZD was the strongest performer amongst its key peers over the past 24-hours, sitting at 0.7850 currently. The NZD showed limited response to NZ trade balance data yesterday morning. July’s merchandise trade deficit ($774m vs. $16m expected by market) was mainly owing to a lump of aircraft imports and higher than usual oil arrival in the month. That aside, there remained a solid tone running through core imports, especially around investment goods. This is encouraging, and may be further evidence of the construction upswing that’s underway.
The NZD/USD showed a quiet ascent ahead of the key data release last night, US durable goods. A disappointing result, saw the NZD benefit from knee-jerk USD selling. The NZD/USD was boosted to 0.7870, holding onto much of the gain to sit around 0.7850 this morning.
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