New Zealand's merchandise trade narrowed from NZ$52 million in May to NZ$9 million in June. Imports remained weak, while exports fell on the month after a previous increase.

Exports fell 1.7 percent on the month in June after advancing 0.5 percent in May and rose 1.3 percent on the year after increasing 2.4 percent previously. Dairy exports recorded solid year-over-year growth, offset by declines in exports of fruit, meat, and forestry products. Exports to the United States and Australia increased on the year, offset by year-over-year declines in exports to China, Japan, and the European Union

Imports fell 6.3 percent on the month in June after dropping 5.0 percent in May and fell 14.4 percent on the year after a previous increase of 3.9 percent. Fuel imports fell sharply on the year after they surged twelve months earlier following the closure in April 2022 of New Zealand's sole oil refinery. Imports fell on the year from all major trading partners with the exception of Japan.

The international trade balance measures the difference between imports and exports of both tangible goods and services. Imports may act as a drag on domestic growth and they may also increase competitive pressures on domestic producers. Exports boost domestic production. Trade balance values are calculated by deducting imports (cif) from exports (fob).

Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect the value of the NZ dollar in the foreign exchange market. Imports indicate demand for foreign goods in New Zealand. Exports show the demand for NZ goods in countries overseas. The currency can be sensitive to changes in the trade deficit run by New Zealand since this trade imbalance creates greater demand for foreign currencies. The bond market is also sensitive to the risk of importing inflation.