Due at 2245GMT we get New Zealand Trade Balance for August
Trade Balance
- expected is -850m, prior was -649m
Exports
- expected is down to 3.6bn for the month, against the prior of 4.2bn
Imports
- expected is 4.44bn, prior was 4.85bn
Commodity price weakness is weighing on the value of NZ exports ... as it is on many commodity exporters of course (hello from Australia!)
The falling NZD is making imports more expensive, though this is not pushing up inflation into a range to concern the RBNZ. Indeed, calls continue for more RBNZ rate cuts, with Finance Minister Bill English, for example, urging the central bank to focus more on getting inflation to a higher level.
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The trade balance data should not be a huge NZD mover today, unless it, or the exports or imports numbers, greatly diverge from what is expected.
Levels ... some resistance just above 0.6300, but better around 0.6320/30
Support .... hmmm, beware of for further downside, but there should be some 0.6200 and 0.6230
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We had Fonterra news earlier
