The New Zealand Dollar is gaining after the release of Chinese Trade Balance data, which showed an unexpected rise in the trade surplus to $125.16 billion in February, according to data from the General Administration of Customs for the People’s Republic of China, released during Thursday’s Asian session.
Economists had expected the Trade Balance to come out at only $103.70 billion, from a lower $75.34 billion in the previous month of January. The higher surplus is a sign of economic health for the Republic of China and suggests greater prosperity, leading to increased demand for New Zealand exports, primarily milk and dairy products. This, in turn, is likely to result in an increase in demand for New Zealand’s currency from Chinese importers.
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