Forex: NZD/USD rises past 0.7300 as dairy payout to farmers up by 20%

Mon, Nov 9 2009, 01:31 GMT
http://www.fxstreet.com

FXstreet.com (Sydney) – The New Zealand dollar rose past 0.7300 on news Fonterra was increasing its payment to farmers by 20%.

As reported in the New Zealand Herald, the price of milk powder soared almost 88% as stocks are replenished. The Kiwi is known as a commodity currency and is well supported when the price of raw materials improve. Within 20 minutes following today’s Fonterra’s announcement, the Kiwi rose from 0.7245 to 0.7340.

In the US last week, unemployment rose 10.2% and investors looked for a safe-haven. This resulted in the USD and JPY strengthening though this did not last long.

NZD/USD

© 2009 “FXstreet.com. The Forex Market” All Rights Reserved. Every effort is made to provide accurate and complete information. However, with the thousands of documents available, often uploaded within short deadlines, we cannot guarantee that there will be no errors. Any republication or redistribution of FXstreet.com content is expressly prohibited without the prior written consent of FXstreet.com.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Any opinions, news, research, analyses, prices or other information contained on this story, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.