Kiwi falls as better US data fails to lift global hopes
Markets will be watching for Fonterra's annual results and merchandise trade data today.
BUSINESSDESK: The New Zealand dollar fell as better-than-expected US home prices and consumer confidence failed to lift optimism about global growth. Markets will be watching for Fonterra's annual results and merchandise trade data today.
The kiwi rallied as high as 82.77 US cents overnight, falling to 82.09 cents at 8am in Wellington, down from 82.29 cents yesterday at 5pm. The trade weighted index was little changed on 73.09 from 73.03.
US consumer confidence rose to a seven-month high of 70.3 in September, from 61.3 in August, showing consumers feel better about their chances of landing a job.
The S&P/Case-Shiller index of property values in 20 US cities gained 1.2% in July compared to the same month a year earlier, the biggest 12-month advance since August 2010. House prices rose 0.2% in July from June.
Attempts to sell the US dollar "have mostly reverted as markets realise good US growth doesn't translate globally", strategists at ANZ Bank say.
Locally, Fonterra will provide confirmation of the final 2011-12 milk price and dividend for dairy farmers this morning. In March, the world's biggest dairy exporter lowered its farmgate milk price by 15 cents to $6.35 a kilogram, citing the rising kiwi and declining global prices of commodities.
Overseas merchandise trade for August from Statistics New Zealand is also due for release this morning.
The kiwi was little changed on 63.63 euro cents from 63.60 cents and largely unchanged on 50.73 British pence from 50.72 pence. It rose to 79.07 Australian cents from 78.89 cents and fell to 63.87 yen from 64 yen.
Hannah Lynch
Wed, 26 Sep 2012
Wed, 26 Sep 2012
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Kiwi falls as better US data fails to lift global hopes
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