Kiwi gains with dairy prices as America votes

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

The New Zealand dollar rose after prices gained in Fonterra's latest sale of dairy products, the nation's biggest export, and as America votes for the next president of the world's biggest economy.

The kiwi rose to 82.84 US cents from 82.61 cents at 5pm in Wellington yesterday. The trade-weighted index rose to 74.09 from 73.94.

Prices of dairy products rose 1.1% in Fonterra's latest GlobalDairyTrade auction, the second straight gain on the sales platform. The auction comes after the ANZ Commodity Price Index rose for a third straight month in October, with cheese up 4%, while butter and milk powders rose 3%.

Prices also increased in New Zealand dollars as the currency firmed.

"The strengthening dairy prices add to the case that the NZD/USD will remain supported at historically high levels," Bancorp Treasury Services says in its morning note.

As Americans vote, the race between President Barack Obama and challenger Mitt Romney is too close to call. Shares rose in the US and the greenback declined against most major currencies as the vote got under way.

"Currency markets continue to be fairly subdued as voting in the US election is under way," says Kymberly Martin, market strategist at bank of New Zealand. "The outcome is still a close call. Results will trickle out during our day."

The kiwi traded at 79.3 Australian cents from 79.23 cents late yesterday, having tumbled when the Reserve Bank of Australia unexpectedly kept its cash rate unchanged at 3.25%.

The New Zealand dollar traded at 64.61 euro cents from 64.56 cents and rose to 51.73 British pence from 51.69 pence.

It rose to 66.6 yen from 66.17 yen after a Bank of Japan official said his bank's new unlimited lending programme may further weaken the yen, according to Bloomberg.

(BusinessDesk)


1 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

1 Comment & Question

Commenter icon key: Subscriber Verified

Boy, are we in for a massive shock when the NZD finally drops......

Reply
Share
  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6339 -0.0030 -0.47%
AUD 0.9040 0.0002 0.02%
EUR 0.5655 -0.0026 -0.46%
GBP 0.4145 -0.0016 -0.38%
HKD 4.9131 -0.0230 -0.47%
JPY 76.4580 -0.3580 -0.47%

Commods

Commodity Price Change Time
Gold Index 1133.1 -6.200 2015-09-02T00:
Oil Brent 51.3 0.930 2015-09-02T00:
Oil Nymex 46.9 0.840 2015-09-02T00:
Silver Index 14.7 0.050 2015-09-02T00:

Indices

Symbol Open High Last %
NZX 50 5590.2 5633.4 5590.2 -0.36%
NASDAQ 4704.4 4750.0 4636.1 2.46%
DAX 10060.3 10122.3 10015.6 0.32%
DJI 16058.4 16352.6 16058.4 1.82%
FTSE 6058.5 6161.7 6058.5 0.41%
HKSE 21101.4 21288.5 21185.4 -1.18%
NI225 18359.5 18481.6 18095.4 1.42%