New Zealand’s annual current account deficit likely unchanged at 3.1 pct of GDP in Q2 - Westpac

New Zealand’s annual current account deficit is expected to have remained the same in the second quarter. According to a Westpac research report, the current account deficit is likely to have stayed at 3.1 percent of the GDP. In seasonally adjusted terms, last quarter’s deterioration in the goods balance is set to reverse, with the goods deficit likely to narrow to NZD 400 million from NZD 1 billion. Supporting this recovery has been an increase in dairy exports volumes and prices after weakness in the previous two quarters. Meat exports have also continued to increase.

The services balance is likely to continue rising from already firm levels. This mainly shows ongoing strong growth in tourism exports, with a record inflow of international visitors over the past year. Tourism exports are expected to be especially solid in the June quarter due to the boosts to spending from the Masters Games and Lions tour. The investment income deficit is likely to have remained stable, added Westpac.

At 22:00 GMT the FxWirePro's Hourly Strength Index of New Zealand Dollar was neutral at 36.8943, while the FxWirePro's Hourly Strength Index of US Dollar was bullish at 88.5456. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest