The New Zealand dollar dropped today after the trade balance deficit unexpectedly swelled last month, decreasing chances for an interest rate hike from the central bank.
The trade deficit widened to NZ$1.2 billion in August up from NZ$771 million in July. Analysts have expected it to stay near the previous value. Traders now bet on 75 basis points interest rate hikes over the next 12 months down from 97 basis points recorded mid-month.
NZD/USD dropped from 0.8278 to 0.8244 as of 13:41 GMT today after reaching the low of 0.8216 intraday. NZD/JPY went down from 81.74 to 81.32 and its daily low was at 80.91.
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