New Zealand's trade deficit narrowed more than expected last month as the nation exported more milk powder, butter and cheese while imports fell.
The deficit was $199 million in September, down from a revised gap of $1.23 billion in August, according to Statistics New Zealand. The annual deficit was $1.54 billion, from $2.1 billion the previous month. A monthly deficit of $750 million was expected for an annual gap of $2.12 billion, based on a Reuters forecast.
The New Zealand dollar recently traded at 84.13 US cents, from 83.93 cents immediately before the 10:45am release of the report.
Exports in September rose 17 per cent to $3.8 billion, led by a 52 per cent rise in the value of milk powder, butter and cheese which were at their highest level for a September month due to increased exports to China.
Australia was the biggest destination for New Zealand exports, with the country taking $848 million of goods in September, up 4.7 per cent from the same month a year earlier. It was closely followed by China which took $815 million of goods, an increase of 74 per cent from September last year. The US is New Zealand's third-largest export market, taking $282 million of goods.