NZ Dollar Extends Decline As Fonterra Slashes Milk Payout Forecast
May 28 2015 - 8:48AM
RTTF2
The New Zealand dollar continued to trade in a negative
territory in European deals on Thursday, after Fonterra Cooperative
Group trimmed its farmgate milk price forecast for the 2014/15
season, due to lower-than-expected global commodity prices.
The milk price for the 2014/15 season was cut to NZ$4.40 per kg
of milk solids, which is the lowest in eight years.
The Co-operative issued its 2015/16 farmgate milk price forecast
at NZ$5.25 per kg of milk solids, as it expect prices to recover in
months ahead.
Fonterra is the world's biggest dairy exporter and its activity
would have a major impact upon New Zealand's economy.
Conflicting reports on the state of talks between Greece and
international creditors also pressured riskier assets. With cash
running out, Greece urgently needs to strike a deal with its
creditors to unlock the next tranche of funds.
The currency was lower against its major rivals, except the
aussie, in the Asian session.
The kiwi dropped to a 2-1/2-month low of 0.7168 against the
greenback, from an early 2-day high of 0.7271. The next possible
support for the kiwi is seen around the 0.70 mark.
The kiwi edged down to 1.0653 against the aussie and 89.12
against the yen, reversing from an early nearly 3-week high of
1.0575 and a 2-week high of 89.93,respectively. The kiwi is seen
finding support around 1.075 against the aussie and 87.5 against
the yen.
The kiwi fell to a 6-day low of 1.5186 against the euro, off its
previous high of 1.4986. On the downside, 1.56 is seen as next
support level for the kiwi.
Looking ahead, U.S. pending home sales data for April is due
shortly.
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