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New Zealand reports wider-than-expected budget deficit

FXStreet (Bali) - New Zealand has published a wider-than-expected budget deficit in August, currently the main driver adding pressure to the Kiwi.

According to the latest New Zealand government financial report, budget operating deficit stood at NZ$2.93b, with the deficit being NZ$338m wider than projected in pre-election forecast published in August. Meanwhile, tax revenue was NZ$122m less than expected (Tax revenue fell to 39% of GDP). Core government spending was NZ$176m more than projected (31.2% of GDP, lowest since 2008). With regards to net debt at June 30, it was 26.2% GDP.

NZ Finance Minister English, also crossed the wires, noting that "the high exchange rate remains challenging for exporters, exporters will be looking forward to better results after recent currency declines." English added that "a return to budget surplus in 2015 remains a significant challenge", also saying that the decline in dairy prices will affect government revenue.

AUD/USD positions on the left mount ahead of RBA

AUD/USD is trading at 0.8743, down -0.20% on the day, having posted a daily high at 0.8781 and low at 0.8740.
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