NZ Dollar Falls Amid Decline In Dairy Prices At Auction The New Zealand dollar declined against its major counterparts in Asian deals on Wednesday, as dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years. The average price for dairy commodities traded in the auction earlier today fell by more than 3 percent to $US2561, the lowest level since August 2009 and down from US$2,649 two weeks ago. About 39,613 tonnes of product was sold, down from 45,499 tonnes of product two weeks earlier. The auction was held by New Zealands Fonterra Co-operative Group, the worlds biggest dairy exporter. Dairy produce being New Zealands biggest export, its drop would weigh on the nations economic outlook, as well as influence the Reserve Bank of New Zealands rate decision. Asian stock markets are trading mixed, ahead of the release of U.S. Federal Reserves October monetary policy meeting minutes. The minutes will be closely watched for fresh clues about when the U.S. central bank will hike interest rates. The kiwi, which closed yesterdays trading at 0.7922 against the greenback, declined to a 5-day low of 0.7860. The next possible downside target for the kiwi lies around the 0.775 zone. The kiwi fell to 1.5921 against the euro, its lowest since November 12. Continuation of the kiwis downtrend may take it to a support around the 1.60 zone. At yesterdays close, the pair was quoted at 1.5811. The kiwi slipped to a 2-day low of 92.09 against the yen and held steady thereafter. Next key downside target for the kiwi-yen pair may be eyed around the 91.00 mark. The pair closed Tuesdays trading at 92.56. The Bank of Japan maintained its massive monetary stimulus a day after Prime Minister Shinzo Abe called for an early election and put off a proposed sales tax hike. The Policy Board of the BoJ voted 8-1 to maintain the annual pace of increase in the monetary base at about JPY 80 trillion as they wait to see the effect of surprise expansion decision taken late last month. The kiwi dropped to a 2-day low of 1.1022 against the Australian dollar in early deals before holding steady thereafter. The aussie-kiwi pair was worth 1.1002 when it closed yesterdays trading. Looking ahead, Eurozone current account data and construction output for September, Bank of Englands minutes of November meeting and Switzerlands ZEW economic sentiment index for November are due in the European session. The U.S. building permits and housing starts for October are to be released in the New York session. The Federal Reserves minutes from October 28-29 policy meeting are due at 2:00 pm ET.
Posted on: Wed, 19 Nov 2014 07:54:48 +0000
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