The New Zealand currency fell against the majors as the New Zealand’s budget deficit was wider than forecasts in the nine months through March after the strongest earthquake in 80 years prevented some New Zealand companies from paying taxes.
On the other hand, the New Zealand dollar inclined versus the U.S. dollar after the Chinese economy reported a strong trade balance surplus in April, as the Chinese market is the largest importer of New Zealand products.
Moreover, the Kiwi declined after gaining for two consecutive days after the International Monetary Fund (IMF) said that kiwi might be as much as 20% overvalued relative to estimates of the equilibrium exchange rate.
The New Zealand economy does not have any scheduled releases for Wednesday. As for the U.S. economy, it will report trade figures for March at 12:30 GMT, and expectations refer to a deficit of $46.6 billion widening from the previous deficit of $45.8 billion.
Originally posted here
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