NZ Dollar Rises As Dairy Prices Rise
March 04 2015 - 12:02AM
RTTF2
The New Zealand dollar strengthened against the other major
currencies in the Asian session on Wednesday, after data showed
that dairy prices rose slightly in the overnight GlobalDairyTrade
auction.
Fonterra's fortnightly Global Dairy Trade auction results showed
that the dairy prices rose 1.1 percent to US$3,374 from US$3,366 at
the previous auction two weeks ago, driven by a big jump in cheddar
and butter milk powder prices.
Prices at the Global Dairy Trade auction rose again last night,
but volumes sold continued to fall.
Tuesday, the NZ dollar rose 0.46 percent against the U.S.
dollar. In the Asian trading today, the NZ dollar rose to a record
high of 1.4769 against the euro, from yesterday's closing value of
1.4797.
The kiwi, which ended yesterday's deals at 1.0346 against the
Australian dollar, appreciated to nearly a 2-week high of 1.0311.
On the upside, 1.01 is the seen as the next resistance level for
the kiwi.
Data from the Australian Bureau of Statistics showed that
Australia's GDP advanced 0.5 percent quarter-over-quarter in the
fourth quarter after the 0.4 percent rise in the third quarter.
Economists expected GDP to rise 0.6 percent. On a yearly basis, GDP
climbed 2.5 percent, in line with the consensus estimate, after the
2.7 percent growth in the third quarter.
Against the U.S. dollar and against the yen, the kiwi edged up
to 0.7569 and 90.51 from yesterday's closing quotes of 0.7541 and
90.33, respectively. If the kiwi extends its uptrend, it is likely
to find resistance around 0.78 against the greenback and 92.10
against the yen.
Looking ahead, PMI reports from major European economies for
February and Eurzone retail sales data for January are due to be
released in the European session.
In the New York session, Markit's U.S. PMI, ISM U.S.
non-manufacturing PMI and private sector employment report - all
for February are slated for release.
At 9:00 am ET, U.S. Federal Reserve Bank of Chicago President
Charles Evans will deliver a speech about the economic outlook and
monetary policy at the Lake Forest-Lake Bluff Rotary Club 2015
Economic Breakfast in Lake Forest.
Around 45 minutes later, Bank of England's Deputy Governor
Andrew Bailey is expected to speak on currency at Treasury
Committee Hearing, U.K.
The Bank of Canada will announce its interest rate decision at
10:00 am ET. Economists expect the bank to retain interest rates
unchanged at 0.75 percent.
At 2:00 pm ET, U.S. Federal Reserve releases Beige Book
report.
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