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

 


NZ dollar weakens as business sentiment slides

NZ dollar weakens as business sentiment continues to slide, Fonterra payout cut

May 28 (BusinessDesk) - The New Zealand dollar weakened after a survey showed business confidence fell for a third month, while Fonterra Cooperative Group confirmed expectations by cutting its milk payout forecasts for this season and the next.

The kiwi was trading at 85.36 US cents at 5pm in Wellington, from 85.38 cents at the start of the day and down from 85.59 cents late yesterday. The trade-weighted index slipped to 79.70 from 79.87 yesterday.

New Zealand business confidence extended its slide from a record high to a third month, in the face of rising interest rates, declining dairy prices and a persistently high kiwi dollar. A net 53.5 percent of firms are optimistic about general business conditions this month, according to the ANZ Business Outlook survey, down from a 20-year high of 70.8 percent in February. Early in the day, Fonterra gave a preliminary forecast payout for the 2015 season of $7 a kilogram of milk solids, after trimming this season's forecast payout to $8.40 per kgMS.

"It's that shift in expectations that markets are reacting to," said Robert Rennie, chief currency strategist at Westpac Banking Corp. "Business sentiment dipping for a third straight month and earlier on, the Fonterra payout, while high this year, clearly next season we're being given a very clear warning the payout is set to drop. The kiwi has under-performed on the basis of those two releases."

With the next Reserve Bank monetary policy statement scheduled for June 12, there is heightened interest in New Zealand economic indicators, as traders mull the likely track for increases in the official cash rate, Rennie said.

The New Zealand dollar fell to 92.14 Australian cents, from 92.41 Australian cents at the start of the day and from 92.39 cents yesterday. The kiwi fell to 87 yen from 87.28 yen yesterday, and was little changed at 62.62 euro cents. The kiwi traded at 50.76 British pence from 50.77 pence yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news