Forex - NZD/USD edges higher ahead of Fonterra milk payout report

Published 02/21/2011, 03:04 AM
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EUR/NZD
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Investing.com – The New Zealand dollar edged higher against its U.S. counterpart on Monday, as markets awaited dairy giant Fonterra Co-Operative Group Ltd.'s milk price payout announcement due Tuesday.

NZD/USD hit 0.7652 during late Asian trade, the daily high; the pair subsequently consolidated at 0.7639, gaining 0.3%.

The pair was likely to find support at 0.7581, Friday’s low and resistance at 0.7721, the high of February 10.

Fonterra's board of directors was expected to review the payout, which is currently estimated to be worth about NZD9 billion, on Tuesday.

Analysts expected recent strong milk prices to see Fonterra increase its forecast milk price payout to farmer shareholders for the 2010-2011 season. The payout for Fonterra's 10,500 farmers is currently based on a milk price of NZD6.90 per kilogram of milk solids.

The kiwi was also up against the euro, with EUR/NZD shedding 0.45% to hit 1.7891.

Also Monday, markets in the U.S. were to remain closed for the President’s Day holiday.

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