New Zealand posted a narrower trade deficit in August as exports of live animals and dairy products underpinned international sales, and imports from major trading partners declined.
The trade deficit shrank to $472 million in August from a revised July deficit of $724 million, and a shortfall of $1.24 billion in the same month a year earlier, according to Statistics New Zealand. That was below the $1.27 billion trade shortfall forecast in a Reuters poll of economists.
The New Zealand dollar rose as high as 80.83 US cents from 80.64 cents immediately before the 10:45am release, and was recently trading at 80.71 cents.
Exports rose 6.9 percent to $3.52 billion in August from the same month a year earlier, beating the $3.15 billion expected. Imports dropped 12 percent to $3.99 billion, lower than the Reuters forecast of $4.45 billion. Excluding a one-off import item in August 2013, imports were down 7.9 percent.
New Zealand has benefited from strong terms of trade this year as strong demand for dairy products and logs from China have bolstered exports, while a high kiwi dollar keeps down the cost of imported goods. Recent declines in dairy and log prices are expected to see that trade outlook ease.