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

 


NZ dollar falls as dairy prices extend decline

NZ dollar falls as dairy prices extend decline

By Suze Metherell

July 2 (BusinessDesk) - The New Zealand dollar declined as dairy prices fell to their lowest in 18 months at Fonterra Cooperative Group's latest GlobalDairyTrade auction, raising concerns about the strength of the local economy.

The kiwi slipped to 87.52 US cents at 5pm in Wellington, from 87.71 cents at 8am and 87.67 at 5pm yesterday. The trade-weighted index edged lower to 81.14 from 81.25 yesterday.

The trade-weighted GDT price index fell 4.9 percent to US$3,595 a tonne, its ninth decline in the last 10 auctions and its lowest level since January 2013, while today's ANZ commodity price index declined for the fourth straight month in June, down 0.9 percent from last month and is now 6.7 percent below its February peak. Dairy is the nation's biggest export, making up 30 percent of New Zealand's annual exports. The lower dairy prices and elevated currency prompted the ANZ economists to downgrade their forecast for the 2015 payout to farmers, which they said would reduce dairy incomes by $3 billion in the season.

"New Zealand has high terms of trade, where our commodity prices are high and our currency is high, so we're selling our goods at their highest possible price," said Martin Rudings, senior dealer at OMF. "When the commodity prices slip there's an idea, or a reasoning, that the economy is not going to do as well so we're not going to earn as much and the currency doesn't deserve to be where it is."

The kiwi fell to 92.57 Australian cents from 92.75 cents yesterday, extending a decline after the Reserve Bank of Australia took a softer tone on the strength of its currency than analysts had been expecting. The Australian currency pared some of those gains after government data today showed a bigger than expected trade deficit.

"We had some weak Aussie data which turned the Aussie lower," OMF's Rudings said.

The kiwi slipped to 51.03 British pence at 5pm in Wellington from 51.24 pence yesterday. The local currency was little changed at 88.91 yen from 88.92 yen yesterday and 64 euro cents from 64.05 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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