New Zealand reports trade deficit in July

New Zealand reported a trade deficit of NZD 0.963 billion in July, which compares with a NZD 1.174 billion shortfall in the same month of 2023.

Still, it has been the nation’s largest trade gap since January.

Total exports surged 14% year-on-year to NZD 6.1 billion in July. That reflected higher shipments of:

– crude oil (310% YoY);
– preparations of milk, cereals, flour and starch (86% YoY);
– fruit (28% YoY);
– milk powder, butter and cheese (11% YoY).

Total imports went up 8.5% year-on-year due to higher purchases of:

– petroleum and products (101% YoY);
– pharmaceutical products (32% YoY);
– plastic and plastic articles (13% YoY);
– electrical machinery and equipment (12% YoY).

The New Zealand Dollar was 0.47% firmer on the day against its US counterpart, with the NZD/USD currency pair last trading at 0.6137.

The US Dollar was mostly flat near a 7-month low against major peers on Tuesday.

Market players are now expecting remarks by Federal Reserve Chair Jerome Powell at Jackson Hole on Friday, where he is likely to signal the central bank will begin easing monetary policy next month.