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

 


NZ dollar pares fall after Fonterra raises farmgate forecast

NZ dollar pares decline after Fonterra raises forecast payout to farmers

By Tina Morrison

Feb. 27 (BusinessDesk) – The New Zealand dollar pared its decline after Fonterra Cooperative Group raises its forecast payout for dairy farmers to a record.

The kiwi climbed to 83.11 US cents at 9am in Wellington, from 82.90 cents at 8am and 83.30 cents at 5pm yesterday after Fonterra hiked its forecast pay-out to farmers by 35 cents to $8.65 per kilogram of milk solids to farmers in the 2013/14 season, up from a previous forecast of $8.30 per kgMS. The dairy company held its forecast dividend of 10 cents per share.

Fonterra, the world's biggest dairy exporter, has raised its forecast pay-out to farmers as global demand for milk powders remains strong. The local currency was weaker against the US dollar as investors favoured the greenback amid political tensions in Russia and the Ukraine and following a report that new home sales in the US surged to a 5 ½ year high in January, easing concerns about a slowdown in the housing market.

“It was a night of USD strength, which gained against all the major currencies as well as a wide swathe of emerging market currencies,” Bank of New Zealand currency strategist Raiko Shareef said in a note.

In New Zealand today, traders will be eyeing data on January trade figures and net migration at 10:45am.

In Australia, fourth quarter capital spending data is expected to show weakness as the mining boom slowed. The report, scheduled for release at 1:30pm New Zealand time, will also give the first estimates of 2014-15 spending.

The New Zealand dollar touched a 10-day high of 92.69 Australian cents early this morning and was trading at 92.58 cents at 8am in Wellington from 92.47 cents at 5pm yesterday.

The Australian currency has been under pressure this week following weakness in the Chinese yuan, as the Aussie is traded as a proxy for the Chinese currency which is not freely traded. Also damping demand for the Aussie, government figures yesterday showed a weak residential building market pushed down the value of construction in the fourth quarter of last year.

In the US, traders are expecting new Federal Reserve chair Janet Yellen to signal that the central bank will continue to taper its bond-buying programme in testimony before the Senate Banking Committee today.

The New Zealand dollar edged lower to 49.81 British pence from 49.95 pence yesterday, slipped to 85.01 yen from 85.28 yen and was unchanged at 60.63 euro cents. The trade-weighted index weakened to 78.03 from 78.19 yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Business Research And Development Up 29 Percent

Computer services and machinery manufacturing firms led the way in an almost 30 percent lift in business spending on research and development (R&D) in 2016, Stats NZ said today. Businesses spent $1.6 billion on R&D in 2016, up $356 million (29 percent) from 2014. More>>

ALSO:

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news