New Zealand Statistics published the balance-of-trade report for May. Despite the surplus of $605M the data turned out to be worse than expected, thus disappointing observers.
The import grew by 17% up to $4020M in May in comparison with May 2010. The import increase was caused by the high prices on oil products and the one-shot supply of spare parts for airplanes.
The export increased by 10% up to $4630M mainly at the expense of traditionally exported products – meat and dairy products and timber. In general the report shows that New Zealand’s economy remains export-oriented, which favors its recovery.
The country’s strong national currency (the New Zealand Dollar) keeps being a benefit for importers as it allows them to by products at more favorable prices. However, the export-oriented sectors of the country’s economy are hampered by it. So they need a currency intervention. The high demand for New Zealand products shown by Asia makes export prices grow, with exporters getting bigger profits. Since the Prime Minister of New Zealand John Key visited India, the world’s second country in terms of population, all the participants of New Zealand’s external trade have been looking forward to expanding the free trade between the two countries.
FOREX.
NZDUSD keeps retracing on H8 against the long-term uptrend. The experts of the Department of Masterforex-V trading system explain that after coming out of the sloping channel the currency pair formed a potentially reversal swing and a “moment of truth” for it. Once the price breaks below 0.7971, it will form a bearish FZR as the downswing will take the form of wave a(C ) or C H8. If the downward scenario is canceled and the price breaks above 0.8192, a bullish FZR H4 will be formed. In this case the bulls will try to make NZDUSD update June’s high.
