New Zealand data: Q2 2024 Terms of trade +2.1% q/q (expected +2.0%)

New Zealand export and import prices data for the April, May and June quarter of 2024

Terms of trade +2.1% q/q

• expected +2.0%, prior +5.1%
• for the y/y, -1.6%

Export Prices +5.2% q/q

• expected +2.8%, prior -0.3%
• for the y/y prices of exports -1.0%
• export volumes -4.3% q/q

Import Prices +3.1%

• expected +0.5%, prior -5.1%
• for the y/y prices of imports +0.7%
• import volumes +3.2% q/q

NZD/USD update, a few pips lower on the data:

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• Terms of trade refer to the ratio between the prices of a country’s exports and the prices of its imports. In other words, it’s the relative value of a country’s exports to its imports.
• When the terms of trade of a country are improving, it means that the prices of its exports are increasing faster than the prices of its imports. This can lead to an increase in the purchasing power of the country’s exports, which can boost economic growth.
• On the other hand, if a country’s terms of trade are deteriorating, it means that the prices of its imports are increasing faster than the prices of its exports. This can lead to a decrease in the purchasing power of the country’s exports, which can negatively impact economic growth.

This article was written by Eamonn Sheridan at www.forexlive.com.