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

 

Scoop Business: RBNZ Starts Talks On Tougher Rules For Property Speculators

The Reserve Bank of New Zealand is stepping up preparations to restrict lending to residential property investors as it watches house prices, particularly in Auckland, continue to rise strongly. More>>

ALSO:

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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