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

 


NZ dollar holds below 85 US cents as dairy auction looms

NZ dollar holds below 85 US cents as dairy auction looms

By Jonathan Underhill

Aug. 18 (BusinessDesk) - The New Zealand dollar was little changed below 85 US cents as a lack of local data had traders watching geopolitical tensions in Ukraine and the Middle East while awaiting the next GlobalDairyTrade auction to see if dairy prices will continue to slide.

The kiwi traded at 84.98 US at 5pm in Wellington, from 84.88 cents at 8am and from 84.82 cents on Friday in New York. The trade-weighted index was at 79.62, little changed from last week.

Price of dairy products dropped to their lowest levels since October 2012 in the last auction two weeks ago, and have declined in 11 of the past 12 sales. Whole milk powder futures fell today on the NZX, suggesting the slide may not have finished yet. Results of the latest auction are posted in the early hours of Wednesday, local time. Global risk appetite has fallen with news that Ukraine attacked an armoured Russian convoy taking aid to separatist rebels.

"For the moment, geo-politics will dominate the direction of the kiwi," said Mark Johnson, a senior dealer at OMF. On the decline in dairy prices, "it's hard to see the trend changing, but I suspect the rate of change will slow."

He said support for the kiwi comes in at between 84 US cents and 84.20 cents, as traders look to pick up a relatively high-yielding currency on dips. Resistance is at 85.20 cents, he said.

Traders will also be watching the release tomorrow of the government's pre-election fiscal and economic update, which will give the last view of the projected 2014/15 fiscal surplus before the Sept. 20 election.

The kiwi traded at 86.92 yen from 86.99 yen last week, and was little changed at 91.11 Australian cents. It traded at 63.42 euro cents from 63.50 cents, and was at 50.78 British pence from 50.84 pence at the end of last week.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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