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NZ Dollar Mixed To Firmer On Domestic News

Fuseworks Media
Fuseworks Media

Wellington, July 29 NZPA - The New Zealand dollar was mixed today as the market took note of a strong business confidence survey and nervously awaited Fonterra's latest payout projection.

The NZ dollar was US65.85c at 5pm from US65.90c at the same time yesterday. It had peaked at US66.33c on Tuesday night.

Dealers said the currency drifted lower today on worries about a Fonterra payout announcement, and as the Australian dollar came off highs.

Given the rise in the NZ dollar the payout was expected to fall. The currency drifted higher as the Australian dollar rose and after a strong National Bank of New Zealand Business Outlook survey was released.

Late today Fonterra announced an unchanged $4.55 per kilogram of milksolids payout for the current season but the makeup of it changed. A 10c/kg milksolids boost in added-value earnings was eroded by a fall of 10c/kg in the commodity milkpowder price.

The NZ dollar traded between US65.98c and US65.46c today.

"Kiwi's held around US65.80c," one dealer said.

Equity markets were also showing a more mixed picture and investors have a wary eye on them. Generally there is profit-taking from recent strong rallies. The US market was looking quite weak when the New Zealand foreign exchange market came in but ended off lows.

The market is also still absorbing a speech late yesterday afternoon by Reserve Bank of Australia Governor Glenn Stevens, which inspired the Australian dollar to spike.

Mr Stevens said the risks to the Australian economy were now more balanced, and that low rates could inflate a housing bubble.

The NZ dollar got close to 63.10 yen on Tuesday night, its highest level in nearly seven weeks. It was 62.15 yen at 5pm today from 62.65 yen at 5pm yesterday.

It fell to 0.4645 euros from 0.4623 at 5pm yesterday.

Against the Australian dollar it was A79.68c at the local close from A79.57c yesterday. The trade weighted index lifted to 61.51 from 61.44 yesterday.


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