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New Zealand’s October trade balance was close to market expectations, although wider than the ASB expected, chief economist Nick Tuffley said.
Exports improved in October, led by strong agricultural exports. Imports remained elevated because of the import of large aircraft.
The Reserve Bank was still expected to leave the official cash rate at 1.75% for the foreseeable future, he said.
"New Zealand typically posts a deficit in October as agricultural exports remain low following the New Zealand winter. Accounting for seasonality, the traded goods balance remains in deficit, although exports did lift reasonably strongly over October on a seasonally adjusted basis."
Dairy exports lifted in October, led by higher prices. Fruit and forestry also performed well.
Meat exports, although up in October on a seasonally adjusted basis, appeared to be weakening and were below year-ago levels.
While agricultural exports performed well, exports of mechanical machinery remained weak.