Statistics New Zealand released its trade data on late Wednesday evening. New Zealand's trade deficit narrowed to NZ$53 million in December from NZ$799 million in November. November's figure was revised down from a deficit of NZ$779 million.

Analysts had expected the deficit to decline to NZ$131 million.

Exports rose 0.6% in December, driven by logs, wood and wood articles, while imports declined 2.6%.

Exports dropped 2.2% year-on-year in December, driven by milk powder, while imports increased by 2.5%.

In 2015 as whole, the trade deficit was NZ$3.5 billion.

"The depreciating New Zealand dollar has an upward effect on import and export prices," Statistics NZ international statistics senior manager Jason Attewell said.