NZ dollar moves again after surprise Key resignation
The kiwi dollar rose to 71.35USc by 8am in Wellington from 70.98c late yesterday
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The New Zealand dollar regained the ground shed after the shock resignation of Prime Minister John Key as traders await tonight's GlobalDairyTrade auction expected to produce another increase in milk powder prices.
The kiwi dollar rose to 71.35USc by 8am in Wellington from 70.98c late yesterday. The trade-weighted index was little changed at 78.14 from 78.10.
The New Zealand dollar initially fell and stocks declined after Mr Key's resignation yesterday, although little policy change may result if his preferred replacement, Finance Minister Bill English, wins the support of the National Party caucus next week. The kiwi fell against the euro, having gained yesterday after Italian Prime Minister Italian Prime Minister Matteo Renzi said he would resign as a result of losing a referendum on constitutional reform.
"After falling back below 71c from a high of 71.50c following the resignation the NZD has retraced the move and we open this morning with the NZD retesting yesterday's highs," traders at HiFX say in a note.
Whole milk powder may rise 3.4%, the fourth straight gain for New Zealand's key commodity export at tonight's dairy auction, based on pricing of NZX dairy futures. Prices for whole milk powder have increased in the second half of this year after a prolonged slump, as demand and supply move back into balance. Dairy companies including Miraka, Open Country Dairy and Westland Milk Products have joined Fonterra in raising payout forecasts in the wake of rising global dairy prices.
The kiwi fell to 66.21 €c from 67.34c late yesterday. It was little changed at 95.38 Ausc ahead of the Reserve Bank of Australia's interest rate review today, which isn't expected to result in a change.
The kiwi rose to 4.9050 yuan from 4.8902 yuan, gained to 81.11 yen from 80.59 yen and advanced to 56.03 British pence from 55.90 pence.
(BusinessDesk)
Jonathan Underhill
Tue, 06 Dec 2016
Tue, 06 Dec 2016
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NZ dollar moves again after surprise Key resignation
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