-Credit Agricole
The Australian Dollar is poised to hit the highest level since November against its New Zealand counterpart, after penetrating a key resistance for the first time in more than a year. The AUD/NZD pair may reach 1.1360. Further strengthening can be limited by disappointing trade figures from the Oz economy.
Australian Bureau of Statistics claimed April's trade balance turned into negative territory as strong demand for imported goods and services and weaker exports levels reversed a four-month strike of trade surpluses. The resource-rich economy logged a $122 million shortfall in the fourth month of 2014, following an upwardly-revised surplus of $902 million a month earlier. Analysts expected a $510 million excess. Shipments plunged 1% on a monthly basis after falling 2% in March. At the same time, imports climbed 2%, after staying flat a month earlier. The main downside pressure came from rural goods exports that took more than $208 million from export receipts, while non-monetary gold subtracted some $131 million from April's trade balance.
A significant drop in exports echoes with RBA' comments, saying the recent pickup in exports would not last long. The Australian economy expanded 1.1% in the first quarter, mostly underpinned by strong exports, however, the latest figures are suggesting the economy will lose momentum in the second quarter.
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