New Zealand trade balance unexpectedly show NZD -86m deficit in April, versus expectation of NZD 200m surplus. That was also the first March deficit 10 years since 2008. Goods exports rose 5.8%, or NZD 265m while imports rose 14%, or NZD 612m.
From Australia, PPI rose 0.5% qoq, 1.7% Yoy in Q1 versus expectation of 0.4% qoq, 1.2% yoy.
NZD and AUD are the weakest major currencies this week, followed by EUR.
Comparing the two, AUD/NZD is in recovery mode since early April. For now, the rise from 1.0486 is seen as a correction and could target 38.2% retracement of 1.1289 to 1.0486 at 1.0793. But we’ll start to look for topping signal around there.
