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

 


NZ dollar falls as falling milk prices put auction in focus

NZ dollar declines as falling milk prices put auction in focus

By Paul McBeth

Aug. 19 (BusinessDesk) - The New Zealand dollar fell as increased focus on the upcoming Fonterra Cooperative Group online dairy auction keeps the local currency under pressure.

The kiwi fell to 84.73 US cents from 84.98 cents yesterday. The trade-weighted index declined to 79.49 from 79.62.

Investors are awaiting the GlobalDairyTrade's event on Tuesday in the US for another gauge on the strength of New Zealand's biggest export commodity, which has underpinned the economic recovery in the past 18 months. Whole milk powder futures fell yesterday and analysts expect another decline in the auction price, which is at its lowest level since October 2012.

"A 2 percent fall would be near no fall, and that would be a positive - it would need a 5 percent or bigger fall to weigh on the kiwi," said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. "If we don't get too big a fall, the kiwi could grind a bit higher."

The Reserve Bank's survey of expectations this afternoon will be watched by traders looking for signs governor Graeme Wheeler may have to reassess his stance on monetary policy.

Westpac's Speizer said the kiwi is expected to continue its downward trend through the rest of the year, though may recover some lost ground after a sharp drop through July.

"Milk and a dovish Reserve Bank are the two big factors the kiwi," he said.

Speizer said the local currency may trade between 84.60 US cents and 85 cents today.

The government will today open its books in the pre-election economic and fiscal update, which will include the latest Treasury forecasts, and Statistics New Zealand separately will release the producers price index.

The local currency traded at 86.87 yen from 86.92 yen yesterday, and declined to 90.85 Australian cents from 91.11 cents. It was little changed at 63.41 euro cents from 63.42 cents yesterday, and edged down to 50.65 British pence from 50.78 pence.

(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