Kiwi Gains against Aussie after Dairy Payouts

Tuesday, November 10, 2009, 07:44 GMT

The Kiwi rose against most major currencies on improving raw material prices in New Zealand after the Fonterra dairy payout. The Kiwi gained fresh strength against the AUD, particularly on the news of Fonterra Cooperative Group Ltd. announcing a 20% stronger dairy payout to farmers.

Economic growth in New Zealand is expected by analysts to pick up speed as Reserve Bank Governor, Allan Bollard, took note of the fact that New Zealand’s GDP growth is “no longer under-performing Australia’s”. The Kiwi rose against 15 of the 16 most traded currencies in the world, against both the USD and the AUD.

Yesterday, the pair closed at 1.2531. It made an intraday high of 1.2547 after having opened at 1.2505 until finally, it dropped to its current price of 1.2502 today, at 02:20 GMT.