New Zealand Weakens After Halted Dairy Trade

China and Russia have temporarily suspended the importation of New Zealand milk powders after Fonterra Cooperative Group LTD warned about possible bacteria in their whey products that causes botulism.

 
 

GBP-NZD - 05.08.13

THE New Zealand Dollar began trading at around 1.6607 to the British Pound last Monday and around 1.0795 against the US Dollar. The Kiwi moved sideways for most of the week before taking a new direction on Friday ending the trading week at 1.6928 to the Pound and 1.1187 to Dollar. The Kiwi opened even weaker on Monday morning at 1.7165 to the Pound and 1.1228 to the US Dollar.

China and Russia have temporarily suspended the importation of New Zealand milk powders after Fonterra Cooperative Group LTD warned about possible bacteria in their whey products that causes botulism. Fonterra is the world’s largest dairy exporter and is a huge contributor to the New Zealand economy. This is likely to have a large effect on the countries balance of trade and the longer the suspension is in place the larger the imbalance in trade will be.

Tuesday will see the release of the UK GDP data in the afternoon. This data is likely to have a large impact on the monetary policy views especially if economic activity is higher than expected. Higher economic activity is likely to increase inflationary pressure in the economy and could support an increase in interest rates.

The New Zealand unemployment figures will be released early Wednesday morning at the start of the New Zealand trading day. Speculators expect the figure to rise to 6.3 percent from the first quarter rate of 6.2 percent.

Composed by Elizabeth Britz

Exchange rates as of 08:41, 06 August 2013

GBP / NZD: 1.9539

EUR / NZD : 1.6880

USD / NZD : 1.2737

AUD / NZD : 1.1424

Note: The above exchange rates are based on “interbank” rates.  If you want to transfer money to New Zealand then please register/login or call us for a live dealing rate. Make use of a Rate Notifier to send you alerts when the New Zealand exchange rate reaches levels you are looking for.

 
 

 

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