Statistics New Zealand released its trade data on late Wednesday evening. New Zealand's trade deficit narrowed to NZ$963 million in October from NZ$1,140 million in September. September's figure was revised up from a deficit of NZ$1,222 million.

Analysts had expected the deficit to decline to NZ$937 million.

Exports dropped 4.5% year-on-year in October, while imports decreased by 2.2%.

"Since annual exports to China fell from their peak in 2014, exports to China and Australia have been around $8.4 billion each. Annual exports to Australia peaked in January 2012 but have been generally falling since, due to lower crude oil exports," Statistics NZ international statistics senior manager Jason Attewell said.