Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ dollar little changed after Fonterra hikes forecast

NZ dollar little changed after Fonterra hikes forecast payout

By Paul McBeth

Aug. 27 (BusinessDesk) - The New Zealand dollar was little changed from yesterday after Fonterra Cooperative Group hiked its forecast payout to farmers as global dairy prices remain elevated.

The kiwi slipped to 78.12 US cents at 5pm in Wellington from 78.43 cents at 8am, and was little changed from 78.23 cents yesterday. The trade-weighted index traded at 78.80 from 73.83.

Fonterra raised its forecast payout 30 cents to $7.80 per kilogram of milk solids for the 2014 season, up from an estimated $5.80 per kgms in the season just finished. Dairy accounts for about a quarter of New Zealand’s exports and the kiwi dollar is often linked with movements in local commodity prices. Still, investors are more focused on US data and whether the Federal Reserve will start winding back its asset purchase programme next month.

“The sentiment around the kiwi and Aussie is not great at the moment,” said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. “We’re going to go right through until the middle of September when the Fed meets” with the kiwi following US data, he said.

The Australasian currencies have also been coming under pressure as investors spurn emerging markets as developing economies look increasingly fragile, preferring instead so-called ‘safe haven’ assets in developed nations.

The New Zealand rose to 87.02 Australian cents at 5pm in Wellington from 86.51 cents yesterday and declined to 76.75 yen from 77.17 yen. The kiwi was little changed at 58.40 euro cents from 58.47 cents yesterday and edged down to 50.15 British pence from 50.25 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news