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

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news