NZ: Trade deficit in Nov at -NZ$1.2b - TDS

Analysts at TDS note that New Zealand’s trade deficit in Nov came at -NZ$1.2b and was much wider than median of NZ$500m, the first monthly deficit of more than NZ$1bn for a November since 2005. 

Key Quotes

“NZD also sagged on a surprise soft auction (overnight NZD time, WMP -2.5% defying upbeat futures) ahead of the trade data.  Current account deficit at 2.6% of GDP was more or less as expected.  However, outside of dairy commodity prices are buoyant (that's 3/4 of exports) and the jump in capital imports in Nov (aircraft and its parts, cars, computers, and diggers) will find its way into consumption and business investment.  So weak headlines but stronger underbelly.”