The market had been expecting a deficit closer to NZD$450 million.
As I wrote a few days ago, the market is pricing in a much greater fall in Australian interest rates than it is in New Zealand rates. That should mean that the AUD/NZD cross comes under pressure, as it is quite sensitive to the interest rate differential. The cross is down slightly at 1.3080 from 1.3100 after the earlier trade figures and should trade inside a 1.3000/1.3150 short-term range.
