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    In December, New Zealand’s imports rose from $7.15 billion to $7.6 billion.

    by VT Markets
    /
    Jan 29, 2026
    New Zealand’s imports rose from $7.15 billion last month to $7.6 billion in December. This increase indicates positive trends in trade and overall economic health. It could reflect a rise in consumer demand or more business activity.

    Understanding New Zealand’s Economic Picture

    This data is essential for understanding New Zealand’s economy and how it may influence future trade policies and relationships. For the latest updates and in-depth analysis of the global economy, additional resources can provide ongoing insights. In December 2025, the rise in imports suggested strong domestic demand as we approached the new year. This strength has shaped our view of the New Zealand economy. It indicated that the economy had more momentum than many expected at the end of last year. Last week, the Q4 2025 inflation numbers showed a headline CPI of 3.2%, exceeding the forecast of 2.9%. This ongoing inflation makes it unlikely that the Reserve Bank of New Zealand will cut interest rates soon. As a result, we expect continued support for a strong New Zealand Dollar (NZD).

    Currency and Interest Rate Outlook

    For derivative traders, this signals that long positions on the NZD may be favorable. We recommend purchasing NZD/USD call options with expiration dates after the next RBNZ meeting, as this allows exposure to potential currency gains while limiting losses to the premium paid. The next RBNZ rate decision on February 20th, 2026, is crucial, and we anticipate increased implied volatility leading up to that date. The swaps market is currently predicting less than a 10% chance of a rate cut, a notable change from the 40% chance forecasted in November 2025. This shows how market expectations have shifted towards a more hawkish stance from the central bank. However, we must also keep an eye on external risks. Recent manufacturing PMI data from China, New Zealand’s largest trading partner, dropped to 49.7 this week, indicating a slight contraction and weaker demand. Any further slowdown in China could reduce demand for New Zealand’s exports, creating challenges for the NZD. Create your live VT Markets account and start trading now.

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