The New Zealand dollar was little changed against the greenback ahead of data expected to show the trade balance remained in deficit in September, and it recovered ground against the Aussie after a selloff yesterday triggered by stronger Australian inflation figures.
The kiwi traded at 71.49 US cents as at 8am in Wellington, from 71.56 cents late yesterday. It rose to 93.55 Australian cents, having dropped as low as 92.88 cents after yesterday's inflation data.
New Zealand's merchandise trade deficit may have narrowed slightly to $1.1 billion in September from $1.27 billion the previous month, although the timing of large one-time purchases such as aircraft could skew the monthly numbers. The trade figures are likely to be the only highlight on a relatively quiet domestic calendar.
While Australia's headline consumer price index rose 0.7 per cent last quarter, beating market expectations of a 0.5 per cent rate, this was driven by a spike in fruit and vegetable prices after unfavourable weather.
"This morning the release of September's trade balance result is likely to be the highlight although in recent times this has had little impact on the currency," traders at HiFX said in a note.
