NZ: Stronger print of terms of trade - TDS

Research Team at TDS, notes that the NZ’s terms of trade was strong, +4.4%/qtr, close to TD’s forecast for a 3.5% rise and well above consensus at 1%.

Key Quotes

“The outcome was entirely driven by falling import prices, -4.3% thanks to oil prices falling sharply, while export prices were unchanged. The market is likely to see past this result because the Q2 number will factor in the rebound in oil prices, which should reverse today’s better result.

QV House Price Index for May rose +12.4%/yr. National prices are up nearly 4% in the last 3 months, and Auckland prices +3.3% in the last 3 months. Investor demand remains strong.”