New Zealand: Terms of trade still expected to fall – ANZ

By FXStreet FXStreet (Bali) – Philip Borkin, Senior Economist at ANZ, notes that despite New Zealand released a solid terms of trade report of 1.3% q/q in June – above expectations -, terms of trade are still expected to fall over coming quarters.

Key Quotes

“The terms of trade rose in Q2 against expectations of a fall. However, we believe this reflects timing issues.”

“We expect falls in the terms of trade over coming quarters as the official trade data fully reflect recent export commodity price movements.”

“Associated volume data suggest net exports made a small negative contribution to GDP growth. At this stage our expectation remains a 0.2% increase in Q2 GDP, highlighting a waning of momentum in the economy.”
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Source:: FX Street