New Zealand’s seasonally adjusted trade surplus narrowed sharply to NZD 1.95 million in July from a revised NZD 23 million in June, as export values remained relatively flat while imports increased slightly. Softer global prices and weaker demand for dairy, meat and forestry products, particularly from China, weighed on exports, while machinery, vehicles and consumer-goods imports held up. The surplus remains positive but was described as one of the largest month-on-month contractions in recent years. Markets showed little immediate reaction, with the New Zealand dollar holding steady against the U.S. dollar. The data could reinforce expectations for easier monetary policy by the Reserve Bank of New Zealand (RBNZ), although inflation remains its primary focus. Economists expect trade to remain volatile and will watch China’s economic data, as China is New Zealand’s largest trading partner.