According to forecasts published by Bloomberg News, the New Zealand trade deficit is projected to have narrowed during July to NZ$150 million from NZ$417 million due primarily to a drop in imports. In fact, imports are anticipated to slow to NZ$3.3 billion from NZ$3.62 billion, while exports are projected to slip to NZ$3.15 billion from NZ$3.2 billion. With the recent improvements in the New Zealand economy, imports have held up rather well, which has been the main driver of the drop in the trade balance last month. However, a further decline in exports will hurt the case for a global economic recovery, and thus, a New Zealand economic recovery. Overall, a surprise widening of the trade deficit should impact the New Zealand dollar the most, and could lead pairs like NZDUSD and NZDJPY lower.