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

 


NZ dollar edges up ahead of Fonterra milk price forecast

NZ dollar edges up ahead of Fonterra milk price forecast

By Paul McBeth

May. 27 (BusinessDesk) - The New Zealand dollar edged up in local trading ahead of Fonterra Cooperative Group's milk price forecast tomorrow, which some economists expect to be cut after a steady decline in the price of dairy products sold on the exporter's GlobalDairyTrade platform.

The kiwi increased to,85.60 US cents at 5pm in Wellington from 85.48 cents at 8am, and 85.34 cents yesterday. The trade-weighted index rose to,79.86 from 79.73 yesterday.

Fonterra will announce its forecast for the 2013/14 and 2014/15,seasons when New Zealand's stock market opens tomorrow, and is widely seen cutting this year's,payout to its farmer shareholders from a record $8.65 per kilogram of milk solids. Soaring dairy prices have underpinned New Zealand's strong terms of trade last year, and their recent decline has economists paring their expectations for a big payout.

"I expected a bit more pressure placed on the kiwi ahead of the expectations for a weaker payout forecast by Fonterra tomorrow, that will be in the back of everyone's minds," said Stuart Ive, senior adviser at OMF in Wellington. "If Fonterra were to reduce the payout, the kiwi might struggle to go through level" of 85/85.10 US cents, which has strong support, he said.

Trading was muted yesterday with the US and UK closed for holidays.

The kiwi was little changed at 65.67 euro cents from 62.65 cents yesterday after European Central Bank president Mario Draghi told a forum in Portugal the bank must be particularly watchful for any negative price spiral in the euro zone, and that it was not resigned to inflation being too low for too long.

Traders will be watching for any more comments from the forum, after the European Parliament elections showed increased support for extremist euro-skeptic parties.

The local currency rose to,87.26 yen from 86.96 yen yesterday as Bank of Japan deputy governor Kikuo Iwata said excessive gains in the currency are bad for the nation’s exports. Governor Haruhiko Kuroda is due to speak at a conference tomorrow.

The kiwi was little changed at 92.39 Australian cents at 5pm in Wellington from 92.37 cents, and traded at 50.76 British pence from 50.68 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news