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

 


NZ dollar break below 90.50 Aust cts ahead of dairy auction

NZ dollar break below 90.50 Australian cts ahead of dairy auction

By Jonathan Underhill

Aug. 19 (BusinessDesk) - The New Zealand dollar fell below a key support level against the Australian dollar and weakened against the greenback as traders took advantage of weaker producer prices and government economic forecasts to sell the kiwi ahead of the latest dairy auction.

The New Zealand dollar fell as low as 90.28 Australian cents and was at 90.40 Australian cents at 5pm in Wellington, from 91.11 cents late yesterday. The kiwi fell to 84.45 US cents from 84.98 cents and still has a way to go to reach a support level of 84 cents.

Government figures today showed producer output prices fell 0.5 percent in the second quarter while input prices dropped 1 percent, mainly reflecting a decline in dairy prices. Meantime, the government trimmed its forecast for its 2015 budget surplus and reduced its projection for near-term economic growth, citing weaker commodity prices and a lower tax take. With everyone from the Treasury to the Reserve Bank citing the drop in dairy, there is extra focus on the GlobalDairyTrade auction overnight, after prices fell in 11 of the past 12 sales.

"There's a lot of focus on the dairy auction tonight," said Raiko Shareef, currency strategist at Bank of New Zealand. "The trend is still very strongly negative" and a further substantial decline could see the kiwi test its support level of 84 US cents, he said.

The kiwi has twice nudged below 90.50 Australian cents in the past three weeks, having failed to break through in early June. It was last lower in December last year.

"We have tested that three times without a convincing break lower," Shareef said. It fell today "as news just piled up in a fairly quiet trading day."

Among other indicators out today, the Reserve Bank's survey of expectations showed businesses have trimmed their expectations for both inflation and economic growth over the next two years. The central bank has signalled a pause in its interest rate tightening cycle as it gauges the impact of increases in the official cash rate so far this year.

The trade-weighted index fell to 79.21 from 79.62 yesterday. It

The local currency traded at 86.66 yen from 86.92 yen yesterday, and fell to 63.22 euro cents from 63.42 cents. It traded at 50.51 British pence from 50.78 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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