New Zealand dollar higher against US counterpart, ignoring weaker surplus

On Thursday New Zealand dollar was on higher levels against its US peer during the later phase of Asian trade, despite smaller than expected amount of the recorded trade surplus in New Zealand.

NZD/USD traded as high as 0.7826, up 0.43% for the day. Support was expected at June 24th low, 0.7684, while resistance was to be met at June 21st high, 0.7807, as obviously that technical level has been breached.

Earlier today it was reported that the surplus on NZ Trade balance was 0.071 billion NZD in May, considerably below the expected 0.427 billion NZD. Surplus was revised up during the preceding month to 0.174 billion NZD from 0.157 billion NZD previously. Current surplus equals 1.7% of countrys export. NZ export figure shrank by 7.8% during May, mismatching projections as well. In the meantime, import fell by 3.9%, meeting expectations.

Additionally, National Bank of New Zealand (NBNZ) Business Confidence climbed to levels since the beginning of 2010, showing that companies in New Zealand were more optimistic about economic conditions during the upcoming months. In June 50.1% of the respondents expected business climate to have improved in the next 12 months, as that result was 8% higher in comparison with the survey results in the previous month. Confidence was at highest levels in construction, as 73% of the respondents projected better business conditions.

AUD/NZD rose by 0.08% to 1.1919 after former Prime Minister Kevin Rudd returned to power, after Prime Minister Julia Gillard resigned on Wednesday, as it became apparent that her party was headed for significant losses.