Video Source: FBNC World Affairs on YouTube
The euro remained range-bound against the Kiwi dollar despite the release of the weak Eurozone Sentix investor confidence index. The New Zealand overseas trade index was slightly better than expectations. Still, the Kiwi was unable to gain enough momentum to rally against the euro. The Eurozone services PMI data to be released on Tuesday is expected to set the trend for the week. Overall, the EUR/NZD pair traded between 1.8116 and 1.8190 in the past 24 hours.
According to the data published by Statistics New Zealand, the country’s overseas trade index inched up 0.40% q-o-q in the June 2023 quarter following a 1.50% decline in the March 2023 quarter and surpassed forecasts of no growth.
Export values for goods grew by 3.10% while import values declined by 5.20%. Services rose by 4.40%. In particular, services exports prices inched up 0.30% while import prices dipped 3.90%.
Dairy export prices declined 2.10% q-o-q in the June 2023 quarter. However, dairy export volumes surged 19% q-o-q in the second quarter. While meat export prices increased 7.40%, volumes jumped 7.60%.
Petroleum and petroleum product import prices declined 6.60% in the June 2023 quarter. Petroleum and petroleum product import volumes slumped 24% in the second quarter.
Total exports of goods and services were N$25.30 billion in the June 2023 quarter, an increase from N$23.10 billion in the June 2022 quarter. Likewise, total imports of goods and services for 2Q 2023 were N$26.60 billion, up from N$26.30 billion in the June 2022 quarter.
Compared with the June 2022 quarter, total services exports grew by N$1.90 billion in the June 2023 quarter to N$5.80 billion. Specifically, travel services exports generated N$2.40 billion in the June 2023 quarter, up N$1.20 billion from the June 2022 quarter. Similarly, transportation services rose by N$322 million to N$827 million.
Total services imports grew by N$960 million to N$7.30 billion in the June 2023 quarter. The increase was led by a N$689 million increase in travel services exports to N$1.50 billion. Additionally, insurance and pension services exports rose by N$184 million to N$775 million.
According to Destatis, the German trade surplus declined to €15.90 billion in July from €18.70 billion in the previous month and missed forecasts of €17.60 billion.
Germany exported goods worth €130.4 billion in July and imported goods worth €114.50 billion in the same period. Exports fell by 0.90% m-o-m in July 2023. Imports rose by 1.40% m-o-m in the same period.
The Eurozone Sentix investor confidence index worsened to -21.50 in September from -18.90 in August, disappointing economists who were expecting only a reading of -19.60.
The current situation index worsened to -22 in August, reflecting the lowest level since November 2022, from -20.50 in July. The expectations index also fell to -21, from -17.30.
In the US, the Sentix investor confidence index declined to 2.20 in August from 5.10 in July. Likewise, the current situation index fell to 14 from 16. The expectations index worsened to -9 from -5.30.
In the case of Asia, the Sentix investor confidence index declined to 0.90 in August from 7.70 in the earlier month. The current situation index slumped to 0.30 from 7.50. Similarly, the expectations index dipped to 1.50 from 8.
The weak Sentix investor confidence index is expected to turn the EUR/NZD pair slightly bearish in the short term.
Technically, the EUR/NZD pair is facing resistance at 1.8190. The next support is anticipated only near 1.7960. Additionally, the RSI indicator is showing a reading below 50. Therefore, we anticipate the EUR/NZD pair to remain in a downtrend in the short term.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
