Q2 Terms of Trade index comes in at +0.3%

  • expected was -3.5% q/q
  • prior was +1.8%
  • Q2 export prices fall 2.0% q/q (-3.8% expected … Reuters poll)
  • Q2 import prices fall 2.3% q/q (+1.2% expected … Reuters poll)
  • Q2 export volumes fall 5.3% q/q (-3.5% expected … Reuters poll) … largest fall since March 2008
  • Q2 import volumes rise 3.6% q/q

NZD up around 10 points on the data release

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From Statistics New Zealand:

  • Terms of trade are now at the same level as the record high reached in September 1973
  • Export prices fell 2.0%, with dairy prices falling 4.3%
  • Excluding dairy, export prices fell 1.2%
  • For the year, export prices rose 7.2%
  • Import prices fell 2.3%, mostly due to a 3.9% drop in petroleum and petroleum product prices. Excluding these, import prices fell 1.9%
  • For the year, import prices fell 4.7%
  • For the year import volumes are up 12.0%.