New Zealand trade balance coming up, but watching coalition decision - ANZ

Analysts at ANZ explained that they expect overseas trade figures for August to show a monthly trade deficit of $520m, which is actually around half the size of the deficit seen in August months since 2012.

Key Quotes:

"We expect overseas trade figures for August to show a monthly trade deficit of $520m, which is actually around half the size of the deficit seen in August months since 2012. which is actually around half the size of the deficit seen in August months since 2012.

"Our Business Outlook survey for September comes with the focus on whether increased political uncertainty has dented sentiment at all. The lack of election clarity, while perhaps not a surprise for local participants, has spooked international investors to a degree.

And you’d have to think that until a coalition decision is made, that uncertainty will at least cap the topside for kiwi.

But stepping back from the election, we still retain a mildly negative bias for kiwi over the medium-term as some of the relativities previously supporting it (relative growth and interest rates, global liquidity cycle etc) lose their lustre to a degree."