New Zealand Dollar Falls After Economic Data, Ahead of RBNZ

The New Zealand dollar fell against its most-traded peers today following the mixed macroeconomic reports and ahead of the central bank’s policy meeting.

The New Zealand trade balance increased to NZ$294 million in May from NZ$193 million in April (revised negatively from NZ$263 million). That is instead of a decline to NZ$100 million predicted by economists.

The ANZ Business Confidence worsened to -39.0 in June from -27.2 in May. The report commented on the result:

Business confidence has been falling since June last year as economic headwinds have strengthened.

The Reserve Bank of New Zealand will make an announcement of its policy decision at 21:00 GMT today. Analysts universally agree that the bank will not make changes to its policy. Therefore, market participants will study the bank’s statement for clues about the New Zealand economic state and plans of the central bank.

NZD/USD dropped from 0.6851 to 0.6803 as of 15:09 GMT today, trading near the lowest level since November 21. EUR/NZD rallied from 1.6975 to 1.7040, reaching the high of 1.7114 intraday. NZD/JPY was down from 75.38 to 75.10, touching the low of 74.78 during the current trading session.

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