Investing.com - The New Zealand dollar has been swinging between gains and losses against its U.S. counterpart during Tuesday's Asian session and is currently spotted slightly lower against the greenback despite a stronger-than-expected February trade balance report.
In Asian trading Tuesday, NZD/USD is off 0.04% at 0.8349. The pair was likely to find support at 0.8308, the low of March 22 and resistance at 0.8398, the high of February 22.
Earlier today, Statistics New Zealand said reported a NZD414 million trade surplus last month. That follows a NZD287 million deficit in January and tops the February surplus of NZD211 million analysts expected.
For the 12 months ending February 28, New Zealand had a trade deficit of NZD1.08 billion, but that is better than the deficit of NZD1.48 billion analysts expected. The data also show the country's trade relationship with China continues to blossom.
New Zealand sent NZD787 million in exports to China last month, up from NZD527 million in February 2012. China is already New Zealand's largest trading partner.
For the month, New Zealand's exports surged 16.7% to NZD3.91 billion, well above the NZD3.6 billion analysts expected. Imports declined 3.9% to NZD3.49 billion, below the NZD3.55 billion analysts were expecting.
The trade balance data can be viewed as the latest in a series of signals that New Zealand's economy is on firm footing and that may diminish the chances of a surprise interest rate cut. Traders widely expect the Reserve Bank of New Zealand to leave rates on hold until early 2014 and proceed with an interest rate increase after that.
Elsewhere, NZD/JPY rose 0.08% to 78.71 while AUD/NZD added 0.02% to 1.2535. EUR/NZD is higher by 0.11% at 1.5410.
Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.