NZ Trade Balance: A monthly trade surplus of NZ$672.00 million in March

New Zealand posted a monthly trade surplus of NZ$672.00 million in March, data from Statistics New Zealand showed on Wednesday, while the annual deficit was NZ$3.46 billion.

Key notes

NEW ZEALAND MARCH MONTH TRADE BALANCE NZ$+672.00 MILLION
NZ MARCH MONTH EXPORTS NZ$+5.81 BILLION
 NEW ZEALAND MARCH ANNUAL TRADE BALANCE NZ$-3.46 BILLION
NZ MARCH MONTH IMPORTS NZ$+5.14 BILLION

At the time of the data, NZD/USD was trading at 0.6060, slightly higher on the day but generally in consolidation of last week's rebound from 0.5908. Markets are in risk-on mode but the bird vulnerable to correction should the ‘risk-on’ tone give way to ‘risk-off’ as investors fear how a second wave of the coronavirus could strike as nations seek to ease social distancing measures. 

Description of NZ Trade Balance

Trade balance, released by Statistics New Zealand, is the difference between the value of the country's exports and imports, over a period of year. A positive balance means that exports exceed imports, a negative one means the opposite. Positive trade balance illustrates the high competitiveness of the country's economy.

Meanwhile, the country has been on a strict lockdown for over a month, in lockstep with the rest of the world trying to prevent the spread of the coronavirus. However, these conditions were eased a little on Tuesday to allow some parts of the economy to restart as new infections wane.