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

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news