Forex: AUD/NZD 1.2589 as Kiwi takes off

Mon, Nov 9 2009, 02:34 GMT
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FXstreet.com (Sydney) – The AUD/NZD lost ground from weekend trade dropping from 1.2660 last Friday to 1.2589. This reflects a strengthening Kiwi on the back of Fonterra’s announcement that its payout to farmers would increase by 20%. This resulted in the Kiwi buying USD 0.7263 up from USD 0.7192 yesterday. The Kiwi is also buying AUD 0.7984.

The Kiwi is known as a commodity currency and is well supported when the price of raw materials improve. Commodity prices posted modest gains in early trade and the World Bank raised its forecast for East Asian growth. The NZ Reserve Bank Governor Alan Bollard is due to give a speech today comparing and contrasting similarities between New Zealand and Australia.

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