New Zealand Posts Record Monthly Trade Deficit

NZD/USD round tripped from an intraday high of $0.7194 Tuesday, as participants tracked gyrations in broader risk appetite. The rate last operates at $0.7165, little changed on the day.

• A clearance of Oct 21 high of $0.7219 would expose $0.7243, which capped gains on Jun 7. Conversely, losses past Oct 25 low of $0.7130 would turn focus to the 200-DMA at $0.7102.
• New Zealand's trade deficit widened a tad to a new record of NZ$2.171bn, as imports surged to an all-time high of NZ$6.57bn. Stats NZ commented that the "three consecutive record months for imports are a reflection of both the higher prices New Zealanders are paying for consumer goods, and strong demand for capital goods such as machinery used in construction, and passenger vehicles."
• Final ANZ Business Confidence will hit the wires at the top of the hour, with ANZ Consumer Confidence coming up Friday.
• Also at the top of the hour, Health Min Hipkins will unveil the Cabinet's decision on Covid-19 Alert Levels in Waikato.
• In case you missed it, RBNZ Gov Orr spoke yesterday and warned that climate change could result in a prolonged period of faster global inflation, which would require monetary policy reactions.